Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

1-2026

Abstract

Against the backdrop of economic volatility and intensified industry competition, firms generally face multidimensional growth pressures, including historical growth pressure, social growth pressure, and market competition pressure. Growth pressure is not only related to firms’ operational stability, but also profoundly influences their strategic choices, particularly merger and acquisition (M&A) behaviour.Grounded in performance feedback theory, this study constructs an integrated analytical framework encompassing growth pressure, M&A strategic decisions, and M&A performance, and systematically examines how different types of growth pressure affect firms’ M&A decisions, as well as how M&A performance varies across different firm characteristics and different types of M&A.

The results show that, first, the relationship between historical growth pressure and firms’ propensity to engage in M&A is not a simple linear one, as growth pressure that is moderately below historical expectations may stimulate M&A intentions, whereas excessively high historical pressure may instead suppress M&A activity. Second, social growth pressure significantly affects firms’ decisions regarding horizontal M&A and cross-border M&A, such that the greater the extent to which a firm’s performance exceeds peer expectations, the lower the likelihood that it will undertake horizontal or international acquisitions. Third, market competition pressure exerts a significant negative effect on firms’ M&A behaviour, with more intense competition reducing firms’ willingness to advance M&A plans. Fourth, M&A performance differs significantly across financing methods, target types, ownership structures, as well as regional and industry characteristics. Equity payment and mixed payment methods enhance short-term M&A performance, whereas cash payment significantly suppresses performance; state-owned and non-state-owned enterprises exhibit distinct patterns in M&A performance; and the direction and magnitude of the effects of growth pressure on M&A decisions and performance also differ significantly between eastern regions and central and western regions.

This dissertation not only enriches the application of performance feedback theory in the field of strategic management, but also provides practical insights for firms formulating M&A strategies under different pressure contexts: moderate pressure can serve as a stimulus for M&A, and M&A strategies should be aligned with firms’ own performance conditions, organisational characteristics, and market positions, in order to achieve robust growth under pressure.

Keywords

Growth pressure, Performance feedback theory, Corporate mergers and acquisitions, M&A performance, Event study method

Degree Awarded

Doctor of Bus Admin (CKGSB)

Discipline

Business Administration, Management, and Operations

Supervisor(s)

FU, Fangjian

First Page

1

Last Page

221

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

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