Po-Hsuan Hsu, Peng Huang, M. Humphery‐Jenner, R. Powell
{"title":"Cross-Border Mergers and Acquisitions for Innovation","authors":"Po-Hsuan Hsu, Peng Huang, M. Humphery‐Jenner, R. Powell","doi":"10.2139/ssrn.2282430","DOIUrl":"https://doi.org/10.2139/ssrn.2282430","url":null,"abstract":"We empirically examine if firms initiate cross-border mergers and acquisitions (M&As) to pursue overseas innovation opportunities. Our deal-level evidence suggests that innovative firms in low innovation countries are more likely to undertake cross-border deals and target innovative targets when doing so in comparison with innovative firms in high innovation countries. Moreover, we find that these cross-border M&As earn higher announcement stock returns from these deals when compared to domestic deals. Our empirical evidence suggests that the acquisition of innovation is an important and value-enhancing driver of cross-border takeovers.","PeriodicalId":151262,"journal":{"name":"FINANCIAL CONSTRAINTS and M&A","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2013-06-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133115342","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}