Board experience and value creation in cross-border acquisitions: The role of acquirer and target country institutions

Jana Oehmichen, Sebastian Firk, Veronika Haas, Michael Wolff

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Abstract

Our study investigates the effects of board acquisition experience on value creation in cross-border acquisitions and the dependence of this relationship on acquirer and target country institutions. We draw on cross-border acquisition research and institution-based corporate governance research to argue that the effect of board acquisition experience depends on the institutional characteristics of the acquirer and target countries and on cultural differences between these two countries. Based on 1775 cross-border acquisitions of U.S. and European acquirers, we show a positive effect of board acquisition experience on the announcement returns of cross-border acquisitions, which is even stronger when the target country’s takeover regulations are less friendly and when the target and acquirer countries are culturally more distant.
Original languageEnglish
Article number101966
Number of pages14
JournalInternational Business Review
Volume31
Issue number4
Early online date13-Dec-2021
DOIs
Publication statusPublished - Aug-2022

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