SoleCRISTransition linkFrontpageTransition linkInstructionsTransition linkLogin Bank of Finland

A Peer-reviewed scientific articles/A1 Journal article (refereed), original research

Anonyymi
      
This is the view page of publication. On this page you can view basic information of publication or go back on previous page using back-action on the bottom of the page. If you want to move to edit the information of publication, use the actions on the bottom of the page or continue using the system from menu.


Can firms learn by observing? Evidence from cross-border M&As, Journal of Corporate Finance (April) (2014). Hasan, Iftekhar; Francis, Bill B.; Sun, Xian; Waisman, Maya


Category A Peer-reviewed scientific articles
Sub-category A1 Journal article (refereed), original research
auki Internal authors
All authors as text Hasan, Iftekhar; Francis, Bill B.; Sun, Xian; Waisman, Maya 
Number of authors 4 
Status Published
Year of publication 2014 
Date 15.04.2014 
Name of article Can firms learn by observing? Evidence from cross-border M&As 
Name of journal Journal of Corporate Finance
Volume of issue 25 
Number of issue (April) 
Pages 202–215 
Abstract In the presence of high uncertainty and limited experience, can observing the actions of other acquiring predecessors help firms make better acquisition decisions? Using a sample of cross-border M&As conducted by US acquirers in developing countries, we document a positive and significant relationship between an acquirer's performance and its predecessors' acquisition activity. This relationship is especially pronounced in the prevalence of news events about the outcome of predecessors' acquisitions, when predecessors consist of US peers from the same industry and/or when targets are based in culturally distant countries. Our findings shed light on one channel through which information spillovers across industries and acquiring firms could be a key driver of value creation in developing market cross-border M&As.
Free text descriptor in English Learning; Observing; Cross-border M&As; Performance 
JEL-codes D23; D83; G14; G32; G34 
ISSN / e-ISSN 0929-1199 
auki Internet addresses
Additional information Available online 11 December 2013.
Notes BoF DP 17/2014 
Related publications