Cross‐border acquisitions and host country competitiveness

Isaac Otchere and Erin Oldford

Journal of Business Finance & Accounting, 2018, vol. 45, issue 9-10, 1260-1292

Abstract: We investigate the competitive effects of cross‐border takeovers and find that following the acquisitions, the competitiveness of cross‐border targets improves. The results for industry rivals, however, are mixed. Rivals of targets of cross‐border acquisitions experience improvements in their competitive position in the long term, while at the same time, their growth and market share suffer. These acquisitions lead to a shifting of market share from rivals to cross‐border targets, which is suggestive of increased industry concentration. Cross‐border acquisitions also enhance the host country's financial market development, and lead to increases in innovation in the host country. Overall, our results cast some doubts on the often pessimistic view of foreign takeovers held by some politicians that these deals are bad for the host country.

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/jbfa.12342

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jbfnac:v:45:y:2018:i:9-10:p:1260-1292

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0306-686X

Access Statistics for this article

Journal of Business Finance & Accounting is currently edited by P. F. Pope, A. W. Stark and M. Walker

More articles in Journal of Business Finance & Accounting from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().