The effects of industry relatedness and takeover motives on cross-border acquisition completion

Mi-Hee Lim and Ji-Hwan Lee

Journal of Business Research, 2016, vol. 69, issue 11, 4787-4792

Abstract: This study builds on behavioral perspectives about risky decision-making and aims to identify the industry- and firm-level factors that affect decision makers' expected returns, perceived risk, and attitude toward risk. Together, these three criteria lead to the ultimate completion or abandonment of a cross-border acquisition after a public announcement. By using data from 1985–2008, this study presents empirical results from cross-border acquisitions. The results show that a cross-border acquisition deal is more likely to succeed when the degree of relatedness between an acquirer's and a target's businesses is high. The findings also show that acquisitions with strategic rather than financial motives are more likely to succeed.

Keywords: Cross-border acquisition; Completion; Abandonment; Decision-making; Industry relatedness; Acquisition motive (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:69:y:2016:i:11:p:4787-4792

DOI: 10.1016/j.jbusres.2016.04.031

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