Graduation Year
2008
Document Type
Dissertation
Degree
Ph.D.
Degree Granting Department
Business Administration
Major Professor
Ninon Kohers Sutton, Ph.D.
Committee Member
Scott Besley, DBA
Committee Member
Christos Pantzalis, Ph.D.
Committee Member
Jianping Qi, Ph.D.
Keywords
mergers and acquisitions, hofstede's cultural dimensions, intangible assets, strategic pioneers, bidder gains, announcement effects, long-run returns
Abstract
This dissertation consists of two self-contained chapters that empirically examine bidder firm returns of U.S. companies in cross-border mergers and acquisitions. In chapter one I examine how cultural distance between bidder and target country impacts internalization benefits. The results suggest that shareholders are initially concerned about the acquisition in culturally distant countries, which outweighs any potential benefits from internalization. However, in the long-run we observe a significant reversal of these findings. In the second and third year following the announcement, greater cultural distance positively impacts the bidder firm's operating performance and the bidder experiences significant internalization benefits from technological know-how when cultural distance is great. Long-run calendar-time returns further support this finding. These results add to the existing literature by highlighting the importance of cultural distance when examining internalization benefits.
In chapter two I attempt to explain abnormal bidder firms' returns in cross-border mergers and acquisitions by comparing the first-mover hypothesis to the late-mover hypothesis. I also study the reactions of rival firms to bidder firm announcements as a further test of the first-mover hypothesis. The findings suggest that cross-border acquisitions are generally value-destroying for strategic pioneers unless cultural distance between the U.S. and the target country is great. Further, I find positive announcement effects for followers as long as cultural distance is small.
Scholar Commons Citation
Steigner, Tanja, "A Study of Cross-Border Takeovers: Examining the Impact of National Culture on Internalization Benefits, and the Implications of Early Versus Late-Mover Status for Bidders and Their Rivals" (2008). USF Tampa Graduate Theses and Dissertations.
https://digitalcommons.usf.edu/etd/514
