Performance of domestic and cross-border acquisitions: Empirical evidence from Russian acquirers

Long-term performance of mergers and acquisitions in ASEAN countries

“…Using various measures of adjusted operating performance (OP) and conducting both univariate and multivariate analyses, we find, on average, a deterioration of post-M&A performance of the combined firms as measured by the return on assets. This result is consistent with previous studies where authors find a negative impact of M&A activity (Alexandridis et al, 2012;Bertrand & Betschinger, 2012;Brouthers & Brouthers, 2000;Danbolt, 1995;Indro & Richards, 2007;Kindra et al, 1998;Kumar & Bansal, 2008;Pawaskar, 2001;Qiu & Wang, 2011;Shelton, 1988;Shimizu et al, 2004;Zhan & Ozawa, 2001). When taking into consideration the impact of the 2007-2008 financial crisis, from the multivariate analysis, we find that the decrease in performance is particularly significant for M&As that are engaged in cross-border deals and have high cash reserves and observe negative effect of diversification for deals during this period.…”

“…The lack of organizational capabilities has been shown to negatively affect international M&As of Russian companies (Bertrand & Betschinger, 2012). Gomes et al (2013) highlight the importance of cross-cultural sensitivity and communication in cross-border M&A; and lacking these skills, the firms involved in M&A activity could experience integration issues.…”

“…However, managers of bidding firms may find it more difficult to assimilate large targets into a combined entity and much of the issues related to large deals has been attributed to managerial hubris which may influence the decision to target larger rather than smaller firms for M&A (Haleblian et al, 2009). Also, the growing size of a company engaged in M&A could potentially impact the cost of bureaucracy within a company (Bertrand & Betschinger, 2012;Indro & Richards, 2007). Most prior empirical research found no significant relation between relative size of target and post-M&A OP (Chatterjee, 2000;Fowler & Schmidt, 1989;Powell & Stark, 2005;Sharma & Ho, 2002).…”

“…Also, authors have argued that using multiple measures in a single study gives a more holistic view of the post-M&A performance (Thanos & Papadakis, 2012a). Hence, following Bertrand and Betschinger (2012), Papadakis and Thanos (2010) and Boisot and Child (1988), we calculate two measures of post-M&A performance: the combined return on assets (ROA), measuring the firms' profitability, and the combined sales margin, providing a picture of the firms' effectiveness (Thanos & Papadakis, 2012a).…”

The Economic Functions of Cross-Border Activities of Skouw Sae Community, Jayapuraconomic Functions of Cross-Border Activities of Skouw Sae Community, Jayapura

“…The balance aims to maintain life and health of someone (Lundquist 2013;Newman 2011;Amelina 2012). The demand for the fulfillment of the above needs encourages the cross-border activity in an organized manner that involves the elements of people, reasons and objectives, specific targets for the participation of its members, norms, activities, facilities and certain functions (Meuleman 2011;Bertrand 2012;Xheneti 2013;Lane 2011). It also encourages the use of collective rules or agreements in the form of a system of ideas based on culture, belief and religion, art and the ceremony of the village community to legitimize, regulate and guide cross-border behavior (Pitelis 2010;Ghosh 2011;Xia 2011;Weidenfeld 2013).…”