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Cross-border Acquisitions (cross-border + acquisition)
Selected AbstractsImpact of Visibility and Investment Advisor Credibility on the Valuation Effects of High-Tech Cross-Border AcquisitionsFINANCIAL MANAGEMENT, Issue 1 2007Georgina Benou Since foreign high-tech firms exhibit a high level of asymmetric information, there is much investor skepticism surrounding the potential benefits to US firms that acquire them. However, the investor perception may be more favorable when the acquisitions involve more visible targets and advice from investment banks with a strong reputation. Based on a sample of 503 high-tech cross-border acquisitions, bidding-firm shareholders experience positive but statistically insignificant valuation effects overall. However, bidder firms experience positive and significant valuation effects when the foreign high-tech target receives a high level of media attention and when the acquisition is endorsed by a top-tier investment bank. Visibility and credibility enhance the perceived benefits of acquiring foreign targets that have substantial intangible assets and a high level of asymmetric information. [source] A general equilibrium analysis of foreign direct investment and the real exchange rateINTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 4 2002Milind M. Shrikhande Abstract Modern theories of foreign direct investment claim that foreign direct investment occurs because certain domestic assets are worth more under foreign control. This view developed by industrial organization theorists is indifferent to the financing mode of a foreign acquisition as well as to the interaction between foreign direct investment (FDI) and real exchange rates. However, empirical research has uncovered a significant relationship between FDI and exchange rates. Second, partial equilibrium models of FDI have focused on FDI as foreign acquisitions of existing assets but not on new capital formation initiated by foreigners. We complement these contributions by developing a welfare-maximizing, general equilibrium model of the interaction between FDI as cross-border acquisitions, and the real exchange rate. Copyright © 2002 John Wiley & Sons, Ltd. [source] THE GLOBAL BANK MERGER WAVE: IMPLICATIONS FOR DEVELOPING COUNTRIESTHE DEVELOPING ECONOMIES, Issue 4 2002GARY A. DYMSKI This paper reconsiders causes and implications of the global bank merger wave, especially for developing economies. Previous studies of the global bank mergers,that is, mergers between banks from different nations,had assumed that these combinations are efficiency-driven, and that the U.S. case defines the paradigm for all other nations' banking systems. This paper argues that the U.S. experience is unique, not paradigmatic, and that bank mergers are not efficiency-driven; instead, this merger wave has arisen because of macrostructural circumstances and because of shifts over time in banks' strategic motives. This paper argues that large, offshore banks often engage in cross-border mergers because they want to provide financial services to households and firms that have reached minimal threshold wealth levels. For developing economies, this suggests that cross-border acquisitions of local banks by offshore banks will have mixed effects; and it cannot be assumed that the net social impact is positive. [source] | ||||||||||