journal article
Cross-Border Acquisitions: An Examination of the Influence of Relatedness and Cultural Fit on Shareholder Value Creation in U.S. Acquiring FirmsMIR: Management International Review
Vol. 35, No. 4 (4th Quarter, 1995)
, pp. 337-359 (23 pages)
Published By: Springer
//www.jstor.org/stable/40228285
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Abstract
This study examines shareholder value creation 112 large cross-border acquisitions undertaken by U. S. firms between 1978 and 1990. In addition to empirically examining the wealth effects of acquiring firms, the study examines the impact of relatedness and cultural distance on such wealth effects. Implications of study findings for academic researchers and managers are discussed.
Journal Information
MANAGEMENT INTERNATIONAL REVIEW is a double-blind refereed journal that aims at the advancement and dissemination of applied research in the fields of International Management. The scope of the journal comprises International Business, Cross-cultural Management, and Comparative Management. The journal publishes research that builds or extends International Management Theory so that it can contribute to International Management Practice.
Publisher Information
Springer is one of the leading international scientific publishing companies, publishing over 1,200 journals and more than 3,000 new books annually, covering a wide range of subjects including biomedicine and the life sciences, clinical medicine, physics, engineering, mathematics, computer sciences, and economics.
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MIR: Management International Review © 1995
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Abstract
Acquisitive growth has become a highly popular strategy in recent years Thus, more attention has been focused on its outcomes. This paper presents theory suggesting a trade-off between growth by acquisition and managerial commitment to innovation. The model developed herein proposes that the acquisition process, and the resulting conditions after the acquisition is consummated, affect managerial commitment to innovation. Specifically, the extent to which acquisitions serve as a substitute for innovation, energy and attention required during negotiations, increased use of leverage, increased size, and greater diversification may affect managers' time and risk orientations. Because of these effects, managers may reduce their commitment to innovation. The implications of the relationships specified in the model are also examined.
Journal Information
Strategic Management Journal publishes original refereed material concerned with all aspects of strategic management. It is devoted to the improvement and further development of the theory and practice of strategic management and it is designed to appeal to both practising managers and academics. Strategic Management Journal also publishes communications in the form of research notes or comments from readers on published papers or current issues. Editorial comments and invited papers on practices and developments in strategic management appear from time to time as warranted by new developments. Overall, SMJ provides a communication forum for advancing strategic management theory and practice. Such major topics as strategic resource allocation; organization structure; leadership; entrepreneurship and organizational purpose; methods and techniques for evaluating and understanding competitive, technological, social, and political environments; planning processes; and strategic decision processes are included in the journal. Strategic Management Journal is currently published 13 times a year.
Publisher Information
Wiley is a global provider of content and content-enabled workflow solutions in areas of scientific, technical, medical, and scholarly research; professional development; and education. Our core businesses produce scientific, technical, medical, and scholarly journals, reference works, books, database services, and advertising; professional books, subscription products, certification and training services and online applications; and education content and services including integrated online teaching and learning resources for undergraduate and graduate students and lifelong learners. Founded in 1807, John Wiley & Sons, Inc. has been a valued source of information and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Wiley has published the works of more than 450 Nobel laureates in all categories: Literature, Economics, Physiology or Medicine, Physics, Chemistry, and Peace. Wiley has partnerships with many of the world’s leading societies and publishes over 1,500 peer-reviewed journals and 1,500+ new books annually in print and online, as well as databases, major reference works and laboratory protocols in STMS subjects. With a growing open access offering, Wiley is committed to the widest possible dissemination of and access to the content we publish and supports all sustainable models of access. Our online platform, Wiley Online Library (wileyonlinelibrary.com) is one of the world’s most extensive multidisciplinary collections of online resources, covering life, health, social and physical sciences, and humanities.
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Collection.
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Strategic Management Journal © 1990 Wiley
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