International Experience and Cross-Border Mergers

Abstract:     
Does experience facilitate cross-border mergers? I show that firms are more likely to conduct a cross-border merger when they have a current director with cross-border deal experience gained during prior service on another firm's board. First-time cross-border mergers are more successful when firms initiating them have a director with cross-border deal experience. Cross-border acquirers are more likely to buy targets headquartered in the specific country where a director has international merger experience. This effect is most pronounced for acquisitions of targets headquartered in unfamiliar foreign environments, and least pronounced at firms with cross-border experience gained through a prior international merger.

Number of Pages in PDF File: 45

Keywords: Mergers and acquisitions, director experience, cross-border mergers, director characteristics, internationalization

JEL Classification: D80, D83, F02, F21, F23, G34, G30, J24, J62, L21, L23, M13, M20, J24, L22, L26, M16

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