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
Advances in Mergers and Acquisitions
ISBN: 978-1-78756-136-6, eISBN: 978-1-78756-135-9
Publication date: 15 June 2018
Abstract
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.
Keywords
Citation
Labbas, E., Sahib, P.R. and Doan, T.T. (2018), "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", Finkelstein, S. and Cooper, C.L. (Ed.) Advances in Mergers and Acquisitions (Advances in Mergers and Acquisitions, Vol. 17), Emerald Publishing Limited, Leeds, pp. 75-93. https://doi.org/10.1108/S1479-361X20180000017004
Publisher
:Emerald Publishing Limited
Copyright © 2018 Emerald Publishing Limited