Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5109699 | Journal of Business Research | 2016 | 6 Pages |
Abstract
This study builds on behavioral perspectives about risky decision-making and aims to identify the industry- and firm-level factors that affect decision makers' expected returns, perceived risk, and attitude toward risk. Together, these three criteria lead to the ultimate completion or abandonment of a cross-border acquisition after a public announcement. By using data from 1985-2008, this study presents empirical results from cross-border acquisitions. The results show that a cross-border acquisition deal is more likely to succeed when the degree of relatedness between an acquirer's and a target's businesses is high. The findings also show that acquisitions with strategic rather than financial motives are more likely to succeed.
Related Topics
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Authors
Mi-Hee Lim, Ji-Hwan Lee,