Many announced cross-border mergers and acquisitions (M&As) are never brought to completion despite potential negative consequences to acquirers and targets. This paper presented evidence on the dynamic effects of spatial distance and two industry-level characteristics, namely industry relatedness between the two firms and technological intensity, on the completion likelihood of cross-border M&A deals. Based on a sample of 8,489 M&A transactions we found that the completion likelihood of cross-border M&As increases with spatial distance. The effect is more pronounced for deals across technology-based industries, evidence for related deals is inconclusive.
Labbas, E., Sahib, P.R. and Doan, T.T. (2018), "Cross-Border M&As in Related and Technology-Intensive Industries: Evidence on the Dynamics of Spatial Distance, Industry Context, and Completion Likelihood of International Takeovers", Finkelstein, S. and Cooper, C.L. (Ed.) Advances in Mergers and Acquisitions (Advances in Mergers & Acquisitions, Vol. 17), Emerald Publishing Limited, pp. 75-93. https://doi.org/10.1108/S1479-361X20180000017004Download as .RIS
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