Country uncertainty, power distance, and payment methods in acquisitions

نویسندگان

چکیده

This study examines the impact of country-specific uncertainty on choice payment method in international acquisitions. Our results show a negative association between level target and cash transactions. Specifically, when host country experiences high uncertainty, acquirers are more likely to choose non-cash transactions which acquiring firms can issue their own equity firm as part or all purchase consideration deal. The result is robust alternative tests analysis subsamples. We also find that differences home countries informative bidders’ choices. Further, we relation weakens there larger power distance countries. findings provide recommendations for policy-making bodies, have implications managers making corporate restructuring decisions.

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ژورنال

عنوان ژورنال: European Journal of Finance

سال: 2021

ISSN: ['1351-847X', '1466-4364']

DOI: https://doi.org/10.1080/1351847x.2021.1971731