Comparison of International and Domestic Acquisitions: A Literature Review

Genc, Omer Faruk

doi:10.11611/yead.282052

Cited by 3 publications

(4 citation statements)

References 83 publications

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“…This synergy from an acquisition reflects on the firm's financial tables (Selçuk, Köksal and Yılmaz, 2016) as well as the stock prices positively (Çakır and Gülcan, 2012). However, there is also a view that stock prices should not be the only determinant of success in acquisitions since short-term reactions and long-term returns may contradict (Genc, 2016). Target companies have their own motivations to engage in acquisitions.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

An Empirical Analysis of Financial Performance and Indicators of Acquisitions

Genc¹,

Kalkan²

2020

Uluslararası İktisadi Ve İdari İncelemeler Dergisi

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A b s t r a c tAcquisitions have been used as a growth strategy in both developed markets and emerging markets. Turkey, as one of the leading emerging markets in the world, has been home to huge number of acquisitions. In this empirical study, we try to shed light on the outcomes of acquisitions that have occurred in Turkey between 1990 and 2017. In addition to compare post-acquisition with pre-acquisition, we use other Turkish companies that don`t engage in acquisitions as benchmark to see the effect of acquisitions on Turkish companies. Our findings indicate that acquisitions have a positive effect on Turkish firms` financial performance. We also find that Turkish acquirers are more aggressive in terms of growth than non-acquirer companies are and have higher values on capital expenditures, research and development and staff expenses. When we compare these acquirers with their preacquisition periods, we also find an increase in these financial indicators, which indicates that acquisitions affect Turkish companies significantly.

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Section: Literature Reviewmentioning

confidence: 99%

“…Similarly, Bendaş (2015) argues that the synergy from the acquisition may lead to economies of scale if acquisition occurs between firms, which operate in the same industry (horizontal acquisition). In a similar vein, Genc (2016) argues that the success of acquisition is not the same for domestic and international deals.…”

Section: Literature Reviewmentioning

confidence: 99%

An Empirical Analysis of Financial Performance and Indicators of Acquisitions

Genc¹,

Kalkan²

2020

Uluslararası İktisadi Ve İdari İncelemeler Dergisi

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“…Although there are studies that found a positive effect of M&As (Chari et al, 2010;Tao et al, 2017), the majority of studies view M&As as detrimental to the firm performance acquisitions (Agrawal et al, 1992;Billet & Qian, 2008;Spyrou & Siougle, 2007). Increase use of M&As despite the high failure rates creates a paradox in the understanding of M&As (Genç, 2016). Agency problems (Kogut & Zander, 1993), CEO overconfidence (Malmendier & Tate, 2008), information asymmetry (Fu et al, 2013) are among the factors that have been used to explain the failure in acquisitions.…”

Section: Literature Reviewmentioning

confidence: 99%

TURKISH MERGERS AND ACQUISITIONS (M As): A HISTORICAL VIEW OF CHARACTERISTICS, TRENDS, AND DIRECTIONS

Genc

Kalkan

2018

ijmeb

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işlem hacmi, vb. özelliklerini içeren genel ve kapsamlı bir profilini çiziyoruz. S&B işlemlerini alıcı ve satıcıların ülkelerine göre 3 gruba ayırıyor ve bu grupları karşılaştırıyoruz. Çalışmamız üç grup satın almanın karşılaştırıldığı ilk çalışma olması ve Türk şirket satın almalarıyla ilgili yapılan çalışmalar içerisinde en geniş dönemi kapsamasından dolayı literatüre önemli katkılar sunmaktadır. Son olarak, firmalar ve politika yapıcılar için çıkarımlar tartışılmakta ve ileri çalışmalar için fikirler verilmektedir.

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“…Although international acquisition has become the preferred mode of international growth over greenfield investments (Vermeulen & Barkema, 2001), existing empirical work on the impact of acquisitions on CEO compensation focuses on domestic acquisitions (Cesari, Gönenç, & Ozkan, 2016; Datta, Iskandar‐Datta, & Raman, 2001; Girma, Thompson, & Wright, 2006; Grinstein & Hribar, 2004). International acquisitions differ fundamentally from domestic ones in terms of both the driving factors as well as post‐acquisition integration issues, which are affected by heterogeneous cultures and institutions, sovereign and exchange risks, and other complications (Genc, 2016). There are some studies that demonstrate those differences.…”

Section: Introductionmentioning

confidence: 99%

Is an M&A self‐dealing? Evidence on international and domestic acquisitions and CEO compensation

Choi

Genc

2020

Business Fin & Account

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We examine the effect of international acquisitions on CEO compensation for US firms from 1995 to 2016 using both domestic acquisition and no acquisition firms as benchmarks. We find that acquisitions lead to a greater increase in CEO compensation (especially incentive‐based compensation), which is consistent with agency theory and inconsistent with stewardship or reputation theory. We also find that international acquisitions lead to a greater increase in CEO incentive‐based compensation than domestic acquisitions, supporting matching theory given that international acquisitions are larger and more complex to manage. Additionally, we document that CEO tenure has a positive effect on CEO compensation, whereas firm relatedness has a negative effect on post‐acquisition CEO compensation. This is the first study of its type based on comprehensive data, and it contributes to our understanding of the role of international and domestic acquisitions in CEO compensation.

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Comparison of International and Domestic Acquisitions: A Literature Review

Abstract: International Aquisitions (IAs)

Cited by 3 publications

References 83 publications

An Empirical Analysis of Financial Performance and Indicators of Acquisitions

An Empirical Analysis of Financial Performance and Indicators of Acquisitions

TURKISH MERGERS AND ACQUISITIONS (M As): A HISTORICAL VIEW OF CHARACTERISTICS, TRENDS, AND DIRECTIONS

Is an M&A self‐dealing? Evidence on international and domestic acquisitions and CEO compensation

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