Shareholder Benefits from Corporate International Diversification: Evidence from U.S. International Acquisitions

Constatinos C Markides and Christopher D Ittner
Additional contact information
Constatinos C Markides: London Business School
Christopher D Ittner: University of Pennsylvania

Journal of International Business Studies, 1994, vol. 25, issue 2, 343-366

Abstract: Do international acquisitions—in contrast to their domestic counterparts—create value for the acquiring firms' shareholders? This study examines the valuation consequences of 276 U.S. international acquisitions made in the period 1975-1988, and provides direct evidence on the effect of international acquisitions on the market value of U.S. bidding firms. It is shown that, on average, international acquisitions create value for the acquiring firms. The study also finds that the value created is a function of the nature of the acquisition (e.g., related or unrelated); the nature of the bidding firm's industry (e.g., its concentration level and advertising intensity); the nature of the acquiring firm (e.g., it prior international experience and its current profitability); and the nature of the macroeconomic environment (e.g., tax regulations and the relative strength of the U.S. dollar).© 1994 JIBS. Journal of International Business Studies (1994) 25, 343–366

Date: 1994
References: Add references at CitEc
Citations: View citations in EconPapers (106)

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v25/n2/pdf/8490204a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v25/n2/full/8490204a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

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:pal:jintbs:v:25:y:1994:i:2:p:343-366

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().