Chapter 4: Cross-Border M&As in Related and Technology-Intensive Industries: Evidence on the Dynamics of Spatial Distance, Industry Context, and Completion Likelihood of International Takeovers
Many announced cross-border mergers and acquisitions (M&As) are never brought to completion despite potential negative consequences to acquirers and targets. This paper presented evidence on the dynamic effects of spatial distance and two industry-level characteristics, namely industry relatedne...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Emerald Publishing Limited
2019
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| Subjects: | |
| Online Access: | http://repository.vnu.edu.vn/handle/VNU_123/63990 |
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| Institution: | Vietnam National University, Hanoi |
| Language: | English |
| Summary: | Many announced cross-border mergers and acquisitions (M&As) are never brought to completion despite potential negative consequences to acquirers and targets. This paper presented evidence on the dynamic effects of spatial distance and two industry-level characteristics, namely industry relatedness between the two firms and technological intensity, on the completion likelihood of cross-border M&A deals. Based on a sample of 8,489 M&A transactions we found that the completion likelihood of cross-border M&As increases with spatial distance. The effect is more pronounced for deals across technology-based industries, evidence for related deals is inconclusive. |
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