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Overbidding in cross-border acquisitions: Misperceptions in assessing and valuing knowledge

Author

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  • Mukherji, Ananda
  • Mukherji, Jyotsna
  • Dibrell, Clay
  • Francis, John D.

Abstract

Many firms competing across borders use acquisitions to gain the knowledge and capabilities that reside in target firms. Assessing and valuing knowledge in the international context is complex and frequently error-prone. The international acquisition literature has not adequately addressed the difficulties of valuing knowledge, the costs associated with acquiring knowledge, the factors behind escalating bids to acquire knowledge, and the impact of knowledge acquisitions on returns. We conceptually explore several key dimensions that influence the assessment and valuation of knowledge and develop propositions positing the effects of predictor variables and moderators on knowledge assessment and valuation in cross-border acquisitions.

Suggested Citation

  • Mukherji, Ananda & Mukherji, Jyotsna & Dibrell, Clay & Francis, John D., 2013. "Overbidding in cross-border acquisitions: Misperceptions in assessing and valuing knowledge," Journal of World Business, Elsevier, vol. 48(1), pages 39-46.
  • Handle: RePEc:eee:worbus:v:48:y:2013:i:1:p:39-46
    DOI: 10.1016/j.jwb.2012.06.005
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Reddy, Kotapati Srinivasa, 2015. "Revisiting and Reinforcing the Farmers Fox Theory: A Study (Test) of Three Cases in Cross-border Inbound Acquisitions," MPRA Paper 63561, University Library of Munich, Germany, revised 2015.
    2. Reddy, Kotapati Srinivasa, 2015. "Extant Reviews on Entry-mode/Internationalization, Mergers & Acquisitions, and Diversification: Understanding Theories and Establishing Interdisciplinary Research," MPRA Paper 63744, University Library of Munich, Germany, revised 2015.
    3. Reddy, Kotapati Srinivasa, 2015. "Determinants of Cross-border Mergers and Acquisitions: A Comprehensive Review and Future Direction," MPRA Paper 63969, University Library of Munich, Germany, revised 2015.
    4. Dutta, Dev K. & Malhotra, Shavin & Zhu, PengCheng, 2016. "Internationalization process, impact of slack resources, and role of the CEO: The duality of structure and agency in evolution of cross-border acquisition decisions," Journal of World Business, Elsevier, vol. 51(2), pages 212-225.
    5. Xie, En & Reddy, K.S. & Liang, Jie, 2017. "Country-specific determinants of cross-border mergers and acquisitions: A comprehensive review and future research directions," Journal of World Business, Elsevier, vol. 52(2), pages 127-183.
    6. Reddy, Kotapati Srinivasa, 2015. "Macroeconomic Change, and Cross-border Mergers and Acquisitions: The Indian Experience, 1991-2010," MPRA Paper 63562, University Library of Munich, Germany, revised 2015.
    7. repec:spr:manint:v:55:y:2015:i:5:d:10.1007_s11575-015-0249-4 is not listed on IDEAS
    8. repec:eee:iburev:v:26:y:2017:i:3:p:461-475 is not listed on IDEAS
    9. Reddy, Kotapati Srinivasa, 2014. "Institutional Dichotomy and Cross-Border Inbound Acquisitions: A Study of Three Cases," MPRA Paper 64221, University Library of Munich, Germany, revised 2014.

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