Arbeitspapier
Can firms learn by observing? Evidence from cross-border M&As
In the presence of high uncertainty and limited experience, can observing the actions of other acquiring predecessors help firms make better acquisition decisions? Using a sample of cross-border M&As conducted by US acquirers in developing countries, we document a positive and significant relationship between an acquirer's performance and its predecessors' acquisition activity. This relationship is especially pronounced in the prevalence of news events about the outcome of predecessors' acquisitions, when predecessors consist of US peers from the same industry and/or when targets are based in culturally distant countries. Our findings shed light on one channel through which information spillovers across industries and acquiring firms could be a key driver of value creation in developing market cross-border M&As.
- ISBN
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978-952-6699-90-5
- Language
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Englisch
- Bibliographic citation
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Series: Bank of Finland Research Discussion Papers ; No. 17/2014
- Classification
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Wirtschaft
- Event
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Geistige Schöpfung
- (who)
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Francis, Bill
Hasan, Iftekhar
Sun, Xian
Waisman, Maya
- Event
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Veröffentlichung
- (who)
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Bank of Finland
- (where)
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Helsinki
- (when)
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2014
- Handle
- Last update
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2025-03-10T11:42:05+0100
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Francis, Bill
- Hasan, Iftekhar
- Sun, Xian
- Waisman, Maya
- Bank of Finland
Time of origin
- 2014
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