2015
DOI: 10.1111/joms.12128
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Effects of Industry‐ and Region‐Specific Acquisition Experience on Value Creation in Cross‐Border Acquisitions: The Moderating Role of Cultural Similarity

Abstract: Based on a sample of 222 cross-border acquisitions by U.S. firms in the service sector, our study examines the effects of acquiring firms' prior cross-border acquisition experience in the same industry and geographic region as the acquired firm on shareholder value creation.Using the BHAR (buy-and-hold abnormal returns) methodology, we find that higher levels of industry-specific and region-specific acquisition experience translate into greater shareholder value creation for acquiring firms in subsequent acqui… Show more

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Cited by 106 publications
(92 citation statements)
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“…To overcome this, researchers could also explore this process by collecting primary data from top management teams and analyze the same by using case study based research methods to understand the decision-making process. Second, we have tested only the impact of acquirer nation UA and host country institutional uncertainty, future researchers could also explore the effect of various other contextual variables such as prior acquisition experience in a particular industry or cultural cluster (Basuil & Datta, 2015;Popli, Akbar, Kumar, & Gaur, 2016).…”
Section: Discussionmentioning
confidence: 99%
“…To overcome this, researchers could also explore this process by collecting primary data from top management teams and analyze the same by using case study based research methods to understand the decision-making process. Second, we have tested only the impact of acquirer nation UA and host country institutional uncertainty, future researchers could also explore the effect of various other contextual variables such as prior acquisition experience in a particular industry or cultural cluster (Basuil & Datta, 2015;Popli, Akbar, Kumar, & Gaur, 2016).…”
Section: Discussionmentioning
confidence: 99%
“…During the past two decades, the international business sphere has witnessed dramatically increasing growth in cross-border collaborations in the forms of strategic alliances, joint ventures, and merger and acquisitions (Ahammad et al, 2012;Ahammad, Tarba, Liu, Glaister and Cooper, 2016;Basuil and Datta, 2015;Chiao et al, 2010;Czinkota et al, 2009;Di Guardo et al, 2016;Dutta et al, 2016;Gaffney et al, 2016;Rao-Nicholson et al, 2016;Sinkovics et al, 2015;Whitelock, 2002;Zheng et al, 2016). Marketing practices and performance in this context have received growing recognition as a key measure of overall effectiveness of the collaboration Burgel and Murray, 2000;Dan and Zondag, 2016;Eng and Ozdemir, 2014;Huang and Brass, 2016;Sinkovics et al, 2015;Vrontis et al, 2009).…”
Section: Introductionmentioning
confidence: 99%
“…Following recent management research (Basuil and Datta, 2015), we derived cultural scores using the cultural practices scale of House et al (2004). We employed GLOBE Beta questionnaire and followed similar approach used by House et al (2004).…”
Section: Cultural Practicesmentioning
confidence: 99%