Cross-border acquisitions: Do labor regulations affect acquirer returns?

• 成果类型: Article
• 署名作者: Levine, Ross; Lin, Chen; Shen, Beibei
• 署名单位: University of California System; University of California Berkeley; National Bureau of Economic Research; University of Hong Kong; Shanghai University of Finance & Economics
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-019-00281-1
• 发表日期: 2020
• 页码: 194-217
• 关键词: cross-border mergers and acquisitions; multinational firms; International business; labor standards; Labor market regulations

摘要

Do cross-country differences in labor regulations shape (1) acquiring firms' announcement returns and post-acquisition profits, costs, and revenues from cross-border deals, (2) the selection of cross-border targets, or (3) the success rates of cross-border offers? We discover that acquiring firms enjoy smaller abnormal returns and post-deal performance gains with targets in stronger labor protection countries; acquirers are more likely to purchase labor-dependent targets in weak labor regulation countries and more likely to use cross-border acquisitions to enter new markets when targets are in stronger labor regulation countries; and offer success rates fall when targets are in stronger labor regulation countries.