 The Effect of Corporate Investment Efficiency on Cross-Border MAsFeng Dong and John Doukas Review of Corporate Finance, 2022, vol. 2, issue 2, 235-294 Abstract: This paper examines whether the heterogeneity of US acquirers’ corporate investment efficiency plays a key role in the observed performance variation of cross-border mergers and acquisitions (CBM&As). We find acquirers with attributes of high investment efficiency realize significantly higher shareholder gains than the deals carried out by low–investment efficiency acquirers. We also find that the inferior performance of CBM&As reported in earlier studies is mainly driven by the strong chief executive officer (CEO) dismissal risk incentives of low–investment efficiency acquirers. Moreover, the likelihood of CEO turnover decreases (increases) significantly if the CBM&As succeed (fail). High-investment-efficiency cross-listed US acquirers in the foreign target’s capital market realize significantly greater returns than their low-investment-efficiency counterparts. Finally, using a qualitative comparative analysis methodology, we further find that high–investment efficiency acquirers strongly prefer foreign targets with salient intangible assets and low acquisition value. US acquirers of low investment efficiency, though, focus only on low-cost international targets. Keywords: Cross-border mergers and acquisitions; investment efficiency; qualitative comparative analysis (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:now:jnlrcf:114.00000015 Access Statistics for this article More articles in Review of Corporate Finance from now publishers |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.