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Cross-border M&As in Related and Technology-intensive Industries : Evidence on the Dynamics of Spatial Distance, Industry Context, and Completion Likelihood of International Takeovers

Labbas, Elisa LU orcid ; Rao Sahib, Padma and Doan, Trang Thu (2018) In Advances in Mergers and Acquisitions 17. p.75-93
Abstract
Many announced cross-border mergers and acquisitions (M&As) are never brought to completion despite potential negative consequences to acquirers and targets. This paper presented evidence on the dynamic effects of spatial distance and two industry-level characteristics, namely industry relatedness between the two firms and technological intensity, on the completion likelihood of cross-border M&A deals. Based on a sample of 8,489 M&A transactions we found that the completion likelihood of cross-border M&As increases with spatial distance. The effect is more pronounced for deals across technology-based industries, evidence for related deals is inconclusive.
Please use this url to cite or link to this publication:
author
; and
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
keywords
Cross-border mergers and acquisitions, Completion likelihood, Industry relatedness, Technology-based industries, Geographic distance
host publication
Advances in Mergers and Acquisitions
series title
Advances in Mergers and Acquisitions
editor
Finkelstein, Sydney and Cooper, Cary L.
volume
17
edition
1
pages
19 pages
publisher
Emerald Group Publishing Limited
external identifiers
  • scopus:85065552374
ISSN
1479-361X
ISBN
978-1-78756-135-9
978-1-78756-136-6
DOI
10.1108/S1479-361X20180000017004
language
English
LU publication?
yes
id
9280d82a-8f11-408c-b4c7-a221d02a878f
date added to LUP
2018-08-29 11:29:15
date last changed
2021-08-18 04:04:12
@inbook{9280d82a-8f11-408c-b4c7-a221d02a878f,
  abstract     = {Many announced cross-border mergers and acquisitions (M&As) are never brought to completion despite potential negative consequences to acquirers and targets. This paper presented evidence on the dynamic effects of spatial distance and two industry-level characteristics, namely industry relatedness between the two firms and technological intensity, on the completion likelihood of cross-border M&A deals. Based on a sample of 8,489 M&A transactions we found that the completion likelihood of cross-border M&As increases with spatial distance. The effect is more pronounced for deals across technology-based industries, evidence for related deals is inconclusive.},
  author       = {Labbas, Elisa and Rao Sahib, Padma and Doan, Trang Thu},
  booktitle    = {Advances in Mergers and Acquisitions},
  editor       = {Finkelstein, Sydney and Cooper, Cary L.},
  isbn         = {978-1-78756-135-9},
  issn         = {1479-361X},
  language     = {eng},
  pages        = {75--93},
  publisher    = {Emerald Group Publishing Limited},
  series       = {Advances in Mergers and Acquisitions},
  title        = {Cross-border M&As in Related and Technology-intensive Industries : Evidence on the Dynamics of Spatial Distance, Industry Context, and Completion Likelihood of International Takeovers},
  url          = {http://dx.doi.org/10.1108/S1479-361X20180000017004},
  doi          = {10.1108/S1479-361X20180000017004},
  volume       = {17},
  year         = {2018},
}