Paper Info
Title
Using Software Stacks to Explain Complementarities: The Case of Mergers and Acquisitions in the Software Industry
Abstract
The existence of product complementarities is especially relevant in network-type industries, such as information technology and communications, where systems of complementary components made by different manufacturers have to be assembled. Relying on the characteristics of software markets, this paper investigates how complementarity creates value in M&As between software companies. We empirically validate the software "stack". In a sample of Mergers and Acquisitions, in which either the acquirer or the target is a software firm, we find an inverse curvilinear relationship between abnormal returns and the distance between acquirers and targets in various layers of the stack.
Year
DOI
Venue
2006
10.1109/HICSS.2006.527
System Sciences, 2006. HICSS '06. Proceedings of the 39th Annual Hawaii International Conference
Keywords
Field
DocType
software company,inverse curvilinear relationship,different manufacturer,complementary component,information technology,abnormal return,product complementarities,software firm,network-type industry,explain complementarities,software stacks,software industry,software market,manufacturing industries,computer aided software engineering,cost accounting,intelligent networks
Software deployment,Computer science,Information technology,Knowledge management,Software as a service,Software,Computer-aided software engineering,Mergers and acquisitions,Industrial organization,Software development,Marketing,Social software engineering
Conference
Volume
ISSN
ISBN
8
1530-1605
0-7695-2507-5
Citations 
PageRank 
References 
3
0.44
2
Authors
2
Name
Order
Citations
PageRank
Lucia Silva140.82
Bala Iyer2102472.28