Are Cross Border Acquisitions More Profitable, or Do They Make Profit More Persistent, than Domestic Acquisitions? UK Evidence

Do cross border and domestic acquisitions differ? Evidence from the acquisition of UK targets

Cross-border Mergers & Acquisitions:

This paper explores the impact of cross-border M&As on host economies of Korea ; China; and Hong Kong, China. For an intensive analytical research on this topic, this paper presents a comprehensive framework for analyzing the various impacts of cross-border M&As on the competitiveness of the host economies. We apply this framework to the data from five outstanding and considerable cases of each...

Cross-border Mergers and Acquisitions

By combining two large data sets (on international trade flows and cross-border mergers and acquisitions – M&As), we test two implications of Neary’s (2003, 2007) general oligopolistic equilibrium (GOLE) model (incorporating strategic interaction between firms in a general equilibrium setting). In terms of economic importance, the dominant merger wave variable is a positive global-all effect, i...

Cross-border Acquisitions: Do Labor Regulations Affect Acquirer Returns?

Do labor regulations influence the reaction of stock markets and firm profitability to cross-border acquisitions? We discover that acquiring firms enjoy smaller abnormal stock returns and profits when targets are in countries with stronger labor protection regulations, i.e., in countries where laws, regulations, and policies increase the costs to firms of adjusting their workforces. These effec...

Inter-Organizational Learning in Technology Acquisitions: Procuring More Than Knowledge

The fifth wave of Merger and Acquisition includes an increasing amount of technology acquisitions. Large firms acquire small, technology-centric firms as an external source of knowledge and innovation. A major challenge in these acquisitions is to capture the knowledge of the acquired firm as well as to assimilate and utilize it in the acquiring company. We extend March’s (1991) model of organi...