Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212292 
Year of Publication: 
2014
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 17/2014
Publisher: 
Bank of Finland, Helsinki
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.
Persistent Identifier of the first edition: 
ISBN: 
978-952-6699-90-5
Document Type: 
Working Paper

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