IDEAS home Printed from https://ideas.repec.org/a/ids/ijmpra/v13y2020i4p419-436.html
   My bibliography  Save this article

Cross-border acquisitions and financial failure of UK firms (2008-2013)

Author

Listed:
  • Nour Adel

Abstract

This study examines the financial failure of UK cross-border acquirers between 2008 and 2013. The researcher investigates acquirers' financial failure using two financial models. Based on a sample of manufacturing and non-manufacturing firms, the research explores the financial health of acquirers over three years starting from the date they announce the deals. The main findings confirm that most of firms suffer from financial instability after announcing their cross-border deals and that according to both models. These findings are consistent with those of other studies; which also demonstrate difficulties experienced when undertaking cross-border deals, and that due to differences in law, rules and cultures between the host and the home countries.

Suggested Citation

  • Nour Adel, 2020. "Cross-border acquisitions and financial failure of UK firms (2008-2013)," International Journal of Management Practice, Inderscience Enterprises Ltd, vol. 13(4), pages 419-436.
  • Handle: RePEc:ids:ijmpra:v:13:y:2020:i:4:p:419-436
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=108299
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gordon A. Walter & Jay B. Barney, 1990. "Research notes and communications management objectives in mergers and acquisitions," Strategic Management Journal, Wiley Blackwell, vol. 11(1), pages 79-86, January.
    2. Schmitz, Patrick W. & Sliwka, Dirk, 2001. "On synergies and vertical integration," International Journal of Industrial Organization, Elsevier, vol. 19(8), pages 1281-1295, September.
    3. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oberg, Christina & Holtstrom, Johan, 2006. "Are mergers and acquisitions contagious?," Journal of Business Research, Elsevier, vol. 59(12), pages 1267-1275, November.
    2. Ilhan-Nas, Tulay & Okan, Tarhan & Tatoglu, Ekrem & Demirbag, Mehmet & Wood, Geoffrey & Glaister, Keith W., 2018. "Board composition, family ownership, institutional distance and the foreign equity ownership strategies of Turkish MNEs," Journal of World Business, Elsevier, vol. 53(6), pages 862-879.
    3. Shi, Wei & Tang, Yinuo, 2015. "Cultural similarity as in-group favoritism: The impact of religious and ethnic similarities on alliance formation and announcement returns," Journal of Corporate Finance, Elsevier, vol. 34(C), pages 32-46.
    4. Arora, Ashish & Fosfuri, Andrea, 1999. "Exploring the internalization rationale for international investment: wholly owned subsidiary versus technology licensing in the worldwide chemical industry," DEE - Working Papers. Business Economics. WB 6430, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    5. Dasí-Rodríguez, Sonia & Pardo-del-Val, Manuela, 2015. "Seeking partners in international alliances: The influence of cultural factors," Journal of Business Research, Elsevier, vol. 68(7), pages 1522-1526.
    6. Manolis, Chris & Nygaard, Arne & Stillerud, Bård, 1997. "Uncertainty and vertical control: An international investigation," International Business Review, Elsevier, vol. 6(5), pages 501-518, October.
    7. Anthony Goerzen & Stephen Sapp & Andrew Delios, 2010. "Investor Response to Environmental Risk in Foreign Direct Investment," Management International Review, Springer, vol. 50(6), pages 683-708, December.
    8. Mutinelli, Marco & Piscitello, Lucia, 1998. "The entry mode choice of MNEs: an evolutionary approach," Research Policy, Elsevier, vol. 27(5), pages 491-506, September.
    9. Wang, Daojuan & Hain, Daniel S. & Larimo, Jorma & Dao, Li T., 2020. "Cultural differences and synergy realization in cross-border acquisitions," International Business Review, Elsevier, vol. 29(3).
    10. Sangcheol Song, 2014. "Subsidiary Divestment: The Role of Multinational Flexibility," Management International Review, Springer, vol. 54(1), pages 47-70, February.
    11. Yi-Ju Lo & Tung Hung, 2015. "Structure offshoring and returns on offshoring," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 443-479, June.
    12. Boateng, Agyenim & Du, Min & Bi, XiaoGang & Lodorfos, George, 2019. "Cultural distance and value creation of cross-border M&A: The moderating role of acquirer characteristics," International Review of Financial Analysis, Elsevier, vol. 63(C), pages 285-295.
    13. Krane, Ronja & Eulerich, Marc, 2020. "Going global: Factors influencing the internationalization of the internal audit function," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 41(C).
    14. Timothy Fisher & Malik Ranasinghe, 2001. "Culture and foreign companies' choice of entry mode: the case of the Singapore building and construction industry," Construction Management and Economics, Taylor & Francis Journals, vol. 19(4), pages 343-353.
    15. Palmero, Alfredo Jiménez & Herrera, Juan José Durán & Sabaté, Juan Manuel de la Fuente, 2013. "The role of psychic distance stimuli on the East-West FDI location structure in the EU. Evidence from Spanish MNEs," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(1), pages 36-65.
    16. A. George Assaf & Alexander Josiassen & Haemoon Oh, 2016. "Internationalization and hotel performance," Tourism Economics, , vol. 22(3), pages 572-592, June.
    17. Peltokorpi, Vesa, 2015. "Corporate Language Proficiency and Reverse Knowledge Transfer in Multinational Corporations: Interactive Effects of Communication Media Richness and Commitment to Headquarters," Journal of International Management, Elsevier, vol. 21(1), pages 49-62.
    18. Liu, Yulong & Yu, Yang, 2018. "Institutions, firm resources and the foreign establishment mode choices of Chinese firms: The moderating role of home regional institutional development," Journal of Business Research, Elsevier, vol. 93(C), pages 111-121.
    19. Li, Larry & McMurray, Adela & Sy, Malick & Xue, Jinjun, 2018. "Corporate ownership, efficiency and performance under state capitalism: Evidence from China," Journal of Policy Modeling, Elsevier, vol. 40(4), pages 747-766.
    20. Beata K. Smarzynska & Shang-Jin Wei, 2002. "Corruption and Cross-Border Investment: Firm-Level Evidence," William Davidson Institute Working Papers Series 494, William Davidson Institute at the University of Michigan.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijmpra:v:13:y:2020:i:4:p:419-436. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=91 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.