Kling, Gerhard, Ghobadian, Abby, Hitt, Michael A., Weitzel, Utz and O'Regan, Nicholas (2014). The Effects of Cross-border and Cross-industry Mergers and Acquisitions on Home-region and Global Multinational Enterprises. British Journal of Management, 25 (SUPPL.), S116-S132.
Abstract
We examine the effects of international and product diversification through mergers and acquisitions (M&As) on the firm's risk-return profile. We identify the rewards from different types of M&As and investigate whether becoming a global firm is a value-enhancing strategy. Drawing on the theoretical work of Vachani (Journal of International Business Studies, 22 (1991), pp. 307-222) and on Rugman and Verbeke's (Journal of International Business Studies, 35 (2004), pp. 3-18) metrics, we classify firms according to their degree of international and product diversification. To account for the endogeneity of M&As, we develop a panel vector autoregression. We find that global and host-region multinational enterprises benefit from cross-border M&As that reinforce their geographical footprint. Cross-industry M&As enhance the risk-return profile of home-region firms. This effect depends on the degree of product diversification. Hence there is no value-enhancing M&A strategy for home-region and bi-regional firms to become 'truly global'.
| Publication DOI: | https://doi.org/10.1111/1467-8551.12023 |
|---|---|
| Divisions: | College of Business and Social Sciences > Aston Business School College of Business and Social Sciences > Aston Business School > Marketing & Strategy |
| Additional Information: | This is the peer reviewed version of the following article: Kling, G. , Ghobadian, A. , Hitt, M. A., Weitzel, U. and O'Regan, N. (2014), Cross‐border and Cross‐industry Mergers and Acquisitions. Brit J Manage, 25: S116-S132, which has been published in final form at https://doi.org/10.1111/1467-8551.12023. This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving. |
| Uncontrolled Keywords: | General Business,Management and Accounting,Strategy and Management,Management of Technology and Innovation |
| Publication ISSN: | 1467-8551 |
| Last Modified: | 15 Nov 2024 08:10 |
| Date Deposited: | 01 Aug 2019 12:29 |
| Full Text Link: | |
| Related URLs: |
http://www.scop ... tnerID=8YFLogxK
(Scopus URL) https://onlinel ... 1467-8551.12023 (Publisher URL) |
PURE Output Type: | Article |
| Published Date: | 2014-01-01 |
| Published Online Date: | 2013-07-17 |
| Authors: |
Kling, Gerhard
Ghobadian, Abby Hitt, Michael A. Weitzel, Utz O'Regan, Nicholas ( 
0000-0003-3014-0373)
|
CORE (COnnecting REpositories)
CORE (COnnecting REpositories)