Determinants of the share of equity sought in cross-border acquisitions

• 成果类型: Article
• 署名作者: Chari, Murali D. R.; Chang, Kiyoung
• 署名单位: Indiana University System; Indiana University South Bend
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/jibs.2008.103
• 发表日期: 2009
• 页码: 1277-1297
• 关键词: Cross-border acquisitions; share of equity; partial acquisitions; entry modes

摘要

The extent of ownership in foreign market entry is an important topic in the entry mode literature. Yet the determinants of the share of ownership sought in cross-border acquisitions (CBAs) have not received much research attention. Drawing on multiple theoretical explanations, we develop and test hypotheses on factors influencing the share of equity sought by foreign firms in CBAs. Findings based on a sample of CBAs by US firms show that the share of equity sought is influenced by many factors, including the cost of valuing local firm assets, difficulty in integrating local firm managers in culturally distant countries, the cost of separating desired assets from the rest of the local firm, and the cost of resource commitment under exogenous uncertainty. Journal of International Business Studies (2009), 40, 1277-1297. doi: 10.1057/jibs.2008.103