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

• Main Authors: Labbas, Elisa, Sahib, Padma Rao, Doan, Trang Thu
• Other Authors: Khoa Quốc tế, ĐHQGHN
• Format: Article
• Language: English
• Published: Emerald Publishing Limited 2019
• Subjects: Cross-border mergers and acquisitions; completion likelihood; industry relatedness; technology-based industries; geographic distance
• Online Access: http://repository.vnu.edu.vn/handle/VNU_123/64803
• Institution: Vietnam National University, Hanoi

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.