Unraveling the Dynamics of Cross-Border Mergers and Acquisitions: Motivations and Performance Implications
This study examines US cross-border mergers and acquisitions (M&As) from 1990 to 2014, analyzing acquirer motivations and their long-term market performance implications. Diverging from previous research, it investigates how pre-merger driving factors impact post-merger synergies. Lower book-to-...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
SAGE Publishing
2025-05-01
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| Series: | SAGE Open |
| Online Access: | https://doi.org/10.1177/21582440251338684 |
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| Summary: | This study examines US cross-border mergers and acquisitions (M&As) from 1990 to 2014, analyzing acquirer motivations and their long-term market performance implications. Diverging from previous research, it investigates how pre-merger driving factors impact post-merger synergies. Lower book-to-market ratios and higher debt ratios signal aggressive and leveraged expansion strategies. Profitable firms with high asset turnover and institutional ownership exhibit greater motivation for takeovers. Post-M&A, larger acquirers with higher dividend payouts, profitability, conservative management, and operational efficiency achieve superior long-term returns. Corporate governance factors play a role, with increased institutional ownership enhancing long-term performance, while high ownership concentration among the top shareholders hinders it. The study provides insights into the motivations and long-term implications of cross-border M&As by examining the impact of pre-merger factors on post-merger synergies. JEL Classification: G34 |
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| ISSN: | 2158-2440 |