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International Deal Experience and Cross-Border Acquisitions

Author

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  • Caleb Stroup

    (Department of Economics, Davidson College)

Abstract

By tracing nearly thirty thousand directors as they move across firms during a twenty-eight year period, I show that that a firm's decision to undertake its first cross-border acquisition is positively influenced by experience with these transactions gained by its current board members during their prior service on other companies' boards. Board experience most affects acquisitions of targets headquartered in culturally or institutionally dissimilar countries, with these deals being more likely to be completed successfully and to be received favorably by financial markets. These findings imply that the geography of international fixed capital investments is influenced by the experiential human capital of a firm's board of directors. Publication Status:

Suggested Citation

  • Caleb Stroup, 2014. "International Deal Experience and Cross-Border Acquisitions," Working Papers 14-13, Davidson College, Department of Economics.
    • Handle: RePEc:dav:wpaper:14-13
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    Citations

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    Cited by:

    1. Radoniqi, Fatos & White, Roger, 2025. "Cross-border mergers and acquisitions: The interplay of cultural differences and prior M&A activity," The Quarterly Review of Economics and Finance, Elsevier, vol. 102(C).
    2. Valeria Gattai & Piergiovanna Natale & Francesca Rossi, 2022. "Board Diversity and Outward FDI: Evidence from Europe," Working Papers 491, University of Milano-Bicocca, Department of Economics, revised Mar 2022.
    3. Liu, Chenxi & Kang, Mengyao, 2025. "Director overseas experience and cross-border acquisitions: Evidence from China," Research in International Business and Finance, Elsevier, vol. 75(C).
    4. Renneboog, Luc & Vansteenkiste, Cara, 2019. "Failure and success in mergers and acquisitions," Journal of Corporate Finance, Elsevier, vol. 58(C), pages 650-699.
    5. Ahsan, Faisal Mohammad & Popli, Manish & Kumar, Vikas, 2024. "Formal institutions and cross-border mergers and acquisitions: A systematic literature review and research agenda," International Business Review, Elsevier, vol. 33(5).
    6. Brad Graham & Caleb Stroup, 2016. "Does anti-bribery enforcement deter foreign investment?," Applied Economics Letters, Taylor & Francis Journals, vol. 23(1), pages 63-67, January.
    7. Agcayazi, Busra & Hibbert, Ann Marie & Morillon, Thibaut G., 2024. "CEO International Background and Cross-Border M&As," Journal of Banking & Finance, Elsevier, vol. 164(C).
    8. Doddy Setiawan & Rayenda Khresna Brahmana & Andi Asrihapsari & Siti Maisaroh, 2021. "Does a Foreign Board Improve Corporate Social Responsibility?," Sustainability, MDPI, vol. 13(20), pages 1-17, October.
    9. Ding, Haoyuan & Hu, Yichuan & Li, Chang & Lin, Shu, 2021. "CEO country-specific experience and cross-border mergers and acquisitions," Journal of Corporate Finance, Elsevier, vol. 69(C).
    10. Kun Li & Chaohua He & Wassim Dbouk & Ke Zhao, 2021. "The Value of CSR in Acquisitions: Evidence from China," Sustainability, MDPI, vol. 13(7), pages 1-21, March.
    11. Gattai, Valeria & Natale, Piergiovanna & Rossi, Francesca, 2023. "Board diversity and outward FDI: Evidence from europe," Economic Modelling, Elsevier, vol. 120(C).
    12. Koray Aktas & Valeria Gattai & Piergiovanna Natale, 2021. "Board Gender Quotas and Outward Foreign Direct Investment: Evidence from France," Working Papers 485, University of Milano-Bicocca, Department of Economics, revised Dec 2021.

    More about this item

    Keywords

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    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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