Using acquisitions to access multinational diversity: thinking beyond the domestic versus cross-border M&A comparison
AbstractPrior research provides ambiguous results regarding the performance of international acquisitions. Drawing on a survey of 248 acquisitions, we find that acquirers enhance their capabilities when they buy a target with a multinational geographic scope. A financial event study uses a subsample of the acquisitions to show that the financial markets also value targets' multinational scope. Both surveys and stock market-based studies suggest that targets with access to heterogeneous resource environments provide the acquirer with greater potential for capability enhancement and financial performance. In contrast, simply acquiring firms across borders has less influence on post-acquisition outcomes. The study demonstrates greater value of the attributes of the target rather than of international expansion alone. Thus, the multinational scope of the target is more likely to account for the resource diversity provided by the target than the country of origin of the target per se. The study changes the emphasis on multinational acquisitions, by shifting the focus from foreign market expansion (country-level emphasis) to accessing geographically distributed resources that are embedded in target firms (firm-level emphasis). Copyright 2005, Oxford University Press.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Oxford University Press in its journal Industrial and Corporate Change.
Volume (Year): 14 (2005)
Issue (Month): 2 (April)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://icc.oupjournals.org/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Joseph A. Clougherty & Michal Grajek, 2006.
"The Impact of ISO 9000 Diffusion on Trade and FDI: A New Institutional Analysis,"
CIG Working Papers
SP II 2006-22, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- Joseph A Clougherty & Michał Grajek, 2008. "The impact of ISO 9000 diffusion on trade and FDI: A new institutional analysis," Journal of International Business Studies, Palgrave Macmillan, vol. 39(4), pages 613-633, June.
- Clougherty, Joseph A & Grajek, Michal, 2006. "The Impact of ISO 9000 Diffusion on Trade and FDI: A New Institutional Analysis," CEPR Discussion Papers 6026, C.E.P.R. Discussion Papers.
- Clougherty, Joseph A. & Grajek, Michal, 2006. "The Impact of ISO 9000 Diffusion on Trade and FDI: A New Institutional Analysis," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 179, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Gómez-Plana, Antonio G. & Latorre, María C., 2014.
"When multinationals leave: A CGE analysis of the impact of divestments,"
Economics - The Open-Access, Open-Assessment E-Journal,
Kiel Institute for the World Economy, vol. 8(6), pages 1-41.
- Gómez Plana, Antonio G. & Latorre, María C., 2013. "When multinationals leave: A CGE analysis of the impact of divestments," Economics Discussion Papers 2013-45, Kiel Institute for the World Economy.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.