The effect of acquirer's board size on the outcome of an acquisition (i.e., whether an announced deal gets abandoned or completed) was examined on the basis of a sample of 775 cross-border acquisitions. The study took into consideration the moderating effect of formal institutional development of the home country. Results showed that board size was negatively associated with the likelihood of deal abandonment and that this relationship was weaker for home countries where formal institutional development was high. The study contributes to the literature on group decision-making theory, institutional view of corporate governance, and acquisition outcome.

The social performance (SP) of a firm is associated with many positive organizational outcomes. Nonetheless, little is known about the effect of the SP of a multinational enterprise (MNE) on the likelihood of cross-border acquisition completion (CBAC). Investigating the link between MNEs’ SP and the likelihood of CBAC is important because it will increase our understanding of how stakeholders reward MNEs with better reputations. Drawing on the signaling and reputation for SP literature, we explore how acquisition complexity, reputational risk, and firm visibility influence CBAC. Based on a sample of 578 cross-border deals undertaken by acquirers in the noncyclical consumer industry (NCCI), our results support a positive relationship between MNEs’ SP and the likelihood of CBAC and strengthening moderating effects of acquirer size and public targets. JEL CLASSIFICATIONS: G34, M16