Abstract

http://ssrn.com/abstract=2037512
 
 

References (106)



 


 



International Deal Experience and Cross-border Acquisitions


Caleb Stroup


Davidson College

November 28, 2014


Abstract:     
This paper shows that firms' decisions to conduct their first cross-border acquisitions are positively influenced by experience with these transactions gained by their board members during prior service on other firms' boards. Cross-border acquirers are more likely to buy a foreign firm headquartered in the specific country with which a director has experience, with this effect being strongest for acquisitions of targets headquartered in culturally and institutionally dissimilar countries. Announced cross-border acquisitions are received more favorably by financial markets and are more likely to be completed successfully. These findings show that corporate directors' human capital facilitates international investments.

Number of Pages in PDF File: 57

Keywords: Cross-border Mergers and Acquisitions, Foreign Direct Investment, Boards of Directors, Human Capital

JEL Classification: F23, F21, J24, L23


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Date posted: April 9, 2012 ; Last revised: December 6, 2015

Suggested Citation

Stroup, Caleb, International Deal Experience and Cross-border Acquisitions (November 28, 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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