Economics at your fingertips  

International diversification and firm performance in the post-acquisition period: A resource dependence perspective

Georgios Batsakis, Geoffrey Wood, Goudarz Azar and Satwinder Singh

Journal of Business Research, 2018, vol. 93, issue C, 151-159

Abstract: Extant research indicates that the performance effect of international diversification is debatable, and to a great extent is contingent upon a number of firm- and country-specific characteristics. We argue that a critical factor determining the behaviour of the above relationship is the event of acquisition, and more specifically the conditions under which the acquisition takes place. Drawing on resource dependence theory, this paper examines the relationship between international diversification and performance (of target firms) in the post-acquisition period. We suggest that this relationship is contingent upon the size of acquisition (volume of shares acquired), and on whether the target firm has an affiliation to a business group. Utilizing a newly-created dataset comprising 164 publicly listed Indian firms for the period 2001–2015, we find support for our hypotheses.

Keywords: International diversification; Firm performance; Post-acquisition; Acquisition size; Business group; Indian firms (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-01-19
Handle: RePEc:eee:jbrese:v:93:y:2018:i:c:p:151-159