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International Deal Experience and Cross-border Acquisitions

Caleb Stroup

Davidson College

September 12, 2014

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.

Number of Pages in PDF File: 33

Keywords: Cross-border Mergers and Acquisitions, Foreign Direct Investment

JEL Classification: F23, F21, J24, L23

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Date posted: April 9, 2012 ; Last revised: June 14, 2015

Suggested Citation

Stroup, Caleb, International Deal Experience and Cross-border Acquisitions (September 12, 2014). Available at SSRN: http://ssrn.com/abstract=2037512 or http://dx.doi.org/10.2139/ssrn.2037512

Contact Information

Caleb Stroup (Contact Author)
Davidson College ( email )
Box 7123
Davidson, NC 28035
United States
HOME PAGE: http://https://sites.google.com/site/calebstroupeconomics/
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References:  106

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