Influence of target industry growth on premiums in cross-border acquisitions

IF 2.2 4区管理学 Q3 BUSINESS

Multinational Business Review Pub Date : 2023-01-26 DOI:10.1108/mbr-06-2022-0088

Ralf Bebenroth, Kashif Ahmed

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Abstract

Purpose In this paper, the knowledge-based view of the firm is applied to theoretically elucidate and empirically examine the influence of target industry growth on premium payments in cross-border acquisitions. This study aims to extend internally driven Mergers and Acquisitions research efforts of acquirers to industry contingencies of targets by analyzing cross-border acquirers located within the group of seven (G7) countries. Design/methodology/approach This study’s investigation covers 209 cross-border acquisitions from 2012 to 2019 undertaken by firms located within the G7 countries. This paper used generalized estimation equations method to test the hypotheses applying Gaussian distribution for the dependent variable, an identity link function, exchangeable correlation structure and robust standard errors. Findings This study’s results reveal that target industry growth determines premiums. Furthermore, this study shows that acquirer industry growth, as well as acquirer slack, moderates this relationship. This study is built on the notion that industry contingencies influence premiums even when target firms are based in foreign countries. Originality/value To the best of the authors’ knowledge, unlike other studies, this is the first to explicitly focus on premiums for multiple cross-border acquisitions by hand selecting nine years of industry sale figures for 53 industries separately in each of the G7 nation countries (leading to 371 separate downloads of data samples). This study contends that industry growth of cross-border targets matters for premium payments.

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目标行业增长对跨国收购溢价的影响

目的本文运用企业的知识观，从理论上阐明并实证检验了目标行业增长对跨境收购溢价支付的影响。本研究旨在通过分析七国集团内的跨境收购方，将收购方内部驱动的并购研究工作扩展到目标的行业突发事件。设计/方法/方法本研究的调查涵盖了2012年至2019年七国集团内公司进行的209次跨境收购。本文采用广义估计方程的方法检验了因变量的高斯分布、单位连接函数、可交换相关结构和稳健标准误差的假设。发现这项研究的结果表明，目标行业的增长决定了保费。此外，这项研究表明，收购方行业的增长以及收购方的疲软都会调节这种关系。这项研究建立在这样一个概念之上，即即使目标公司位于外国，行业意外事件也会影响保费。原创性/价值据作者所知，与其他研究不同，这是第一次通过手工选择九项来明确关注多次跨境收购的保费七国集团每个国家53个行业的多年行业销售数据（导致371个数据样本的单独下载）。这项研究认为，跨境目标的行业增长对保费支付至关重要。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Multinational Business Review BUSINESS-

CiteScore

5.40

自引率

14.80%

发文量

期刊介绍： Multinational Business Review publishes high quality and innovative peer-review research on the strategy, organization and performance of multinational enterprise (MNE), international business history, geography of international business, and the impact of international business on economic growth and development. The journal encourages papers that are cross-disciplinary in nature, and that address new and important issues in international business. Multinational Business Review also promotes research on under-represented regions such as Africa, Central and Eastern Europe, Latin America, and South East Asia and their MNEs, as well as under-studied topics such as the role of trade, investment and other public policies. Specific topics of interest include innovation and entrepreneurship in an international context; corporate governance and ownership; social, environmental and political risk; the role of multilateral institutions; and the nature of emerging market multinationals. The title seeks strong conceptual studies, contributing to the advancement of theories and frameworks, and sound empirical work, whether qualitative or quantitative, suggesting managerial, economic or government policy recommendations. The journal encourages replication studies that contribute to our understanding of the reliability and validity of current knowledge. Finally, Multinational Business Review welcomes proposals for perspectives pieces that offer critical and challenging viewpoints; surveys of the literature particularly those that use new and innovative bibliometric methods; and special issues on topics of relevance to Multinational Business Review.