Deal completion in cross border acquisitions waves: The role of deal timing and pace

IF 5.7 2区 管理学 Q1 BUSINESS Global Strategy Journal Pub Date : 2023-08-02 DOI:10.1002/gsj.1492
Mohammad Fuad, Ajai S. Gaur, Chinmay Pattnaik
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引用次数: 1

Abstract

Research Summary

Cross-border acquisitions (CBAs) exhibit a wave-like pattern, clustering temporally, industry-wise, and at the country level. We draw upon the bargaining power perspective and argue that CBA wave context alters the relative bargaining position between acquirer and target firms, which affects deal completion. Our findings suggest that acquisition wave deals have a lower likelihood of completion compared to non-wave deals. However, within a CBA wave, we find that acquirers that move early and with a high acquisition pace have a higher likelihood of deal completion. We test our arguments on a simulation-based dataset comprising 17,815 wave and non-wave deals identified between 1990 and 2012 across 13 acquirer and 21 target countries. We contribute to the CBA literature by differentiating between wave and non-wave environments and their impact on deal completion.

Managerial Summary

Cross-border acquisitions (CBAs) often happen in waves that emerge at the industry and country-levels. These waves are characterized by heightened level of acquisition activities such that the relative position of acquirer and target firms is different within waves as compared to outside of the waves. As a result, acquisition deals announced within waves are less likely to be completed than those announced outside of the waves. At the same time, acquiring firms that announce acquisitions at an early stage within a CBA wave and move with a faster speed to conduct more acquisitions are more likely to successfully close the deals than other firms.

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跨境收购浪潮中的交易完成:交易时机和速度的作用
跨境收购(cba)呈现出一种波浪式的模式,在时间上、行业上和国家层面上都具有集群性。本文运用议价能力视角,认为CBA浪潮背景改变了收购方与目标公司之间的相对议价地位,从而影响了交易的完成。我们的研究结果表明,与非收购浪潮交易相比,收购浪潮交易的完成可能性较低。然而,在一轮CBA浪潮中,我们发现,行动早、收购速度快的收购方完成交易的可能性更高。我们在一个基于模拟的数据集上测试了我们的论点,该数据集包括1990年至2012年间13个收购方和21个目标国家的17,815笔波浪和非波浪交易。我们通过区分波动和非波动环境及其对交易完成的影响,为CBA文献做出了贡献。跨境收购(cba)经常在行业和国家层面出现。这些浪潮的特点是收购活动水平的提高,使得收购方和目标公司的相对地位在浪潮内与在浪潮外是不同的。因此,在并购浪潮中宣布的收购交易完成的可能性低于在并购浪潮之外宣布的收购交易。与此同时,在CBA浪潮的早期阶段宣布收购并以更快的速度进行更多收购的收购公司比其他公司更有可能成功完成交易。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
14.20
自引率
11.80%
发文量
46
期刊介绍: The Global Strategy Journal is a premier platform dedicated to publishing highly influential managerially-oriented global strategy research worldwide. Covering themes such as international and global strategy, assembling the global enterprise, and strategic management, GSJ plays a vital role in advancing our understanding of global business dynamics.
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