CROSS BORDER MERGERS AND ACQUISITIONS

Cross Border Mergers and Acquisitions

Abstract

This study discovers antecedents to post-acquisition presentation of cross-border M&As and investigates the proficiency of entrepreneurial orientation (EO) to moderate the connection between cross-border amalgamations and acquisitions (M&As) and their postacquisition performance. EO, and its three constructs of innovativeness, proactiveness and risk taking, was assessed utilising the self-report EO Scale evolved by Covin and Slevin (1989). Merger kinds chased by acquirers were grouped as level acquisitions or non-horizontal, while the post-acquisition assesses utilised in the study were Stock (Jensen's Alpha), accounting (IAROA & IAROS), and perceptual.

The methodology in this study utilised inter-correlation investigation and moderated hierarchical regression (MHR) investigation to check the consequences of amalgamation kinds and EO (including its three dimensions) on post-acquisition presentation of international acquirers, who are established in the districts of North America, Europe and Asia.

The outcomes verified that the experiment of international acquirers displayed a connection with changing grade of implication between amalgamation kinds chased and the acquirer's postacquisition performance. This study furthermore discovered a non-linear and a curvilinear connection between EO, particularly risk taking subscale, and firm performance.

However, EO and its three proportions did not have any moderation leverage on the connection between amalgamation kinds and the acquirers' post-acquisition performance. The deduction of the study is that multinational companies have to identify that accomplishing the largest grade of post-acquisition presentation by a cross-border M&A scheme entails a balancing proceed between the kinds of amalgamations chased or grade of relatedness amidst amalgamating companies as well as the grade of entrepreneurship orientation that amalgamating companies possess. And since there is no agreement on an befitting assess of presentation of the convoluted cross-border M&As, it is vital to utilize multiple procedures to double-check robust results.

Another finding is that EO, and its three proportions, can be utilized as an explanatory assemble that can assist direct managers in setting up a thriving acquisition scheme in an worldwide context, over numerous commerce and in varied geographic areas. Despite the detail that EO and its three proportions did not present as moderators to the amalgamation type- post-acquisition presentation connection in this study, this international and multidisciplinary structure eradicates EO as a moderator and directs future study to discover other unidentified moderators to assist interpret antecedents to the cross-border M&As achievement or failures.

Table of Contents

Abstract2

Chapter 1: Introduction4

Introduction5

Key Variables16

Purpose of the Study17

Need for the Study18

Research Questions and Hypotheses20

Research questions21

Research hypotheses21

Limitations22

Contribution of the Dissertation23

Outline of Dissertation25

Chapter 2: Literature Review26

Historical Perspective and Timeline27

Merger Waves27

Motives for Cross-Border M&As32

Focus of the Study38

Cross-Border M&As Success & Failure39

Post-Acquisition Performance Measures46

Stock Market Analyses47

Operating Performance (Accounting) Studies50

Perceptual Measures of Financial Performance53

Entrepreneurial Orientation57

EO Dimensions59

EO Instrument, Reliability and Validity63

EO Link to Firm Performance68

Chapter Three: Methodology76

Key Variables76

Research Questions and Hypotheses77

Research questions78

Research hypotheses78

The Data79

The Hypotheses87

The Results of the Empirical Analysis88

Chapter Four: Results and Discussion95

Summary of Results and Discussion96

Chapter Five: Conclusion and Recommendations119

References126

Appendix: A Figures155

Appendix B: Tables158

Chapter 1: Introduction

Introduction

The force of globalization continues to apply growing pressures on multinational corporations (MNCs) to diversify and grow their business outside of their local ...