IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v15y2025i2p21582440251338684.html
   My bibliography  Save this article

Unraveling the Dynamics of Cross-Border Mergers and Acquisitions: Motivations and Performance Implications

Author

Listed:
  • Ching-Chih Wu
  • Tsung-Yi Liu
  • Tung-Hsiao Yang

Abstract

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

Suggested Citation

  • Ching-Chih Wu & Tsung-Yi Liu & Tung-Hsiao Yang, 2025. "Unraveling the Dynamics of Cross-Border Mergers and Acquisitions: Motivations and Performance Implications," SAGE Open, , vol. 15(2), pages 21582440251, May.
    • Handle: RePEc:sae:sagope:v:15:y:2025:i:2:p:21582440251338684
    DOI: 10.1177/21582440251338684
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440251338684
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440251338684?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    mergers and acquisitions; corporate governance; synergy; long-term performance; cross-border M&As;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:15:y:2025:i:2:p:21582440251338684. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.