Legal systems and gains from cross-border acquisitions

Determinants of Cross-Border Mergers and Acquisitions: A Comprehensive Review and Future Direction

“…In particular, deals that characterize higher valuation and cash payment usually attract government attention and political intervention (e.g., Angwin, 2001;Ferreira et al, 2010;Halsall, 2008). We found mixed results for stock returns around acquisition announcement involving cash payment, stock payment and earnout offers (e.g., Barbopoulos et al, 2012). More specifically, there is significant need for both M&A advisors and local players when firms from developed countries target firms in emerging economies, and vice-aversa.…”

“…The underexplored issues include global strategies and internationalization process of firms in developing countries (Casillas & Acedo, 2013;Peng, Wang, & Jiang, 2008;Wan, 2005;Wright, Filatotchev, Hoskisson, & Peng, 2005), performance of cross-border acquisitions in emerging markets (Bertrand & Betschinger, 2012;Shimizu et al, 2004), pre-merger phase and negotiation phase of international acquisitions (Reis et al, 2013), benefits and costs to the bidding firm shareholders in overseas acquisitions to domestic deals (Barbopoulos et al, 2012;Boeh, 2011), home-host country determinants of foreign market entry strategies, particularly FDIs and acquisitions (Barbopoulos et al, 2014;Brouthers & Dikova, 2010;Luo, 2001;Buckley et al, 2007;Very & Schweiger, 2001), role of country-level legal and regulatory framework in foreign market entry strategies (Meyer et al, 2009), relational, learning, spillover, and real options perspectives in internationalization process (Theodorakopoulos, Patel, & Budhwar, 2012;Xu & Meyer, 2013), collaborative approaches (e.g., alliances, networks) in foreign market entry (Berggren, 2003;Shi et al, 2011), and timing of acquisitions deal at local and international context (Marks & Mirvis, 2011). In a recent review paper, Kearney (2012) suggested few areas for future research in emerging markets, which include market efficiency, risk-adjusted returns and risk premium, firm-level internationalization, attracting and benefiting from FDI, corporate and institutional governance, and behavioral perspectives.…”

Institutional Laws, and Mergers and Acquisitions in India: A Review/Recommendation

“…Previous studies in strategy, finance and international business streams suggested that foreign direct investment through acquisition mode is usually influenced by host country's institutions, legal, economic, political and cultural factors (Barbopoulos et al, 2012;Bris et al, 2008;Erel et al, 2012;Feito-Ruiz and Menéndez-Requejo, 2011;Ries et al, 2013;Serdar Dinc and Erel, 2013;He, 2014, Zhang et al, 2011). In fact, the risk of these institutional dichotomous variables increases when a firm from developed market wants to acquire a firm in developing market (Reddy et al, 2014a).…”

“…In Barbopoulos et al (2012), Erel et al (2012), and Zhang and He (2014), the authors suggested that "knowledge of the legal system and regulatory provisions, and tax subsidies for international investments or new business ventures is seriously essential for the managers of acquiring enterprises". Importantly, managers should aware local political setting, local government control, bureaucratic administration procedure, home and host country relations, trade agreements, and overall global business environment, together build special attention in achieving institutional dichotomous problems (Zhang and He, 2014).…”

Macroeconomic Change, and Cross-Border Mergers and Acquisitions: The Indian Experience, 1991-2010

“…In due course of time, developed economies merger waves have engulfed developing countries considering the 1990-91 economic deregulation and liberalization experience (e.g., Weston, Chung, & Hoag, 1998;Weston, Mitchell, & Mulherin, 2003). 6 A number of American and European researchers have extensively been investigated M&A in key areas ranging from the negotiation process to due diligence activity, stock returns to accounting performance for pre-and post-acquisition periods, post-merger strategies to culture-integration issues, and so forth (e.g., Barbopoulos, Paudyal, & Pescetto, 2012;Basuil & Datta, 2015;Boateng, Hua, Uddin, & Du, 2014;Collins et al, 2009;Conklin, 2005;Corhay & Rad, 2000;Das & Kapil, 2012;Erel, Liao, & Weisbach, 2012;Ketkar, 2012;Kling et al, 2014;Malhotra, Sivakumar, & Zhu, 2011;Morresi & Pezzi, 2011;Mukherji, Mukherji, Dibrell, & Francis, 2013;Rasedie & Srinivasan, 2011;Reus, 2012;Serdar Dinc & Erel, 2013;Stepanok, 2015;Vasconcellos, Madura, & Kish, 1990). Conversely, I find a few studies on international mergers and joint ventures noticed in EMs institutional setting.…”