Resource Redeployment and Acquisition Performance in Crossborder and Domestic Acquisitions
- Topics:
- Investment Strategy,
- Mergers
- Tags:
- Acquisition,
- Business Operations,
- Corporate Law,
- Finance,
- International Business,
- Investment,
- Mergers & Acquisitions,
- University Of Michigan
- Source:
- University of Michigan
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Overview: Research in the strategy and international business literatures shows that firms often undertake acquisitions in order to exchange resources. The core arguments arise from theories of market failures, where market failures can stem from potential opportunism or from coordination difficulties. However, empirical research on cross-border and domestic acquisitions has not been able to reach a consensus regarding post-acquisition strategy and performance in the two types of cases. This paper show that the post-acquisition performance of acquisitions in both domestic and cross border contexts varies with the extent of post-acquisition redeployment, which in turn depends on two factors, including the degree of asymmetry in the resource profiles of the firms and the extent of context-specificity of these resources.
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Format: PDF | Size: 124KB | Date: Dec 2002 | Pages: 33
