Cross-border mergers and acquisitions for innovation
Mark Humphery-Jenner and
Journal of International Money and Finance, 2021, vol. 112, issue C
We propose and empirically examine cross-border mergers and acquisitions (M&As) as an important dimension of firms’ innovation strategies. Our empirical analyses, based on a sample of 85,591 M&A deals from 57 countries, show that innovative firms in low innovation countries are more likely to undertake cross-border deals, and select innovative targets when doing so, as compared with innovative firms in high innovation countries. We also find that these cross-border M&As earn higher announcement stock returns when compared to domestic deals. We show that innovative firms from low innovation countries produce more patents, and invest more in research and development (R&D) after they acquire targets in high innovation countries. This study provides new evidence to the absorptive capacity theory from an international perspective.
Keywords: Innovation; Mergers; Acquisitions; Cross-border (search for similar items in EconPapers)
JEL-codes: G34 O32 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:112:y:2021:i:c:s026156062030276x
Access Statistics for this article
Journal of International Money and Finance is currently edited by J. R. Lothian
More articles in Journal of International Money and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().