Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Bank of Finland Research Discussion Papers, Bank of Finland

No 17/2014:
Can firms learn by observing? Evidence from cross-border M&As

Bill B. Francis (), Iftekhar Hasan (), Xian Sun () and Maya Waisman ()

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.

Keywords: learning; observing; cross-border M&As performance; (follow links to similar papers)

JEL-Codes: D23; D83; G14; G32; G34; (follow links to similar papers)

42 pages, July 9, 2014

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

BoF_DP_1417.pdf    PDF-file
Download Statistics
This paper is published as:
Francis, Bill B., Iftekhar Hasan, Xian Sun and Maya Waisman, (2014), 'Can firms learn by observing? Evidence from cross-border M&As', Journal of Corporate Finance, Vol. 25, April, pages 202-215

Questions (including download problems) about the papers in this series should be directed to Minna Nyman ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:bofrdp:2014_017 This page was generated on 2014-12-14 19:21:40