Abstract
This paper investigates the role of bilateral trade openness in technology-acquiring cross-border mergers and acquisitions (M&As) by emerging market firms (EMFs). The cross-border M&A, patents, and financial data from January 2000 to December 2013 have been utilised for empirical analyses. By analysing cumulative abnormal returns of the acquirer EMFs from Brazil, Russia, China, India, and Mexico, the value-creating nature of technology-acquiring cross-border M&As has been confirmed. In addition, the number of the patents owned by the target firms showed a positive and significant effect on the stock performance of cross-border acquirers. Finally, the bilateral trade openness significantly and positively moderated the relation between the innovation capability of the target firms and EMFs’ stock performance.
Original language | English |
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Pages (from-to) | 251-265 |
Number of pages | 15 |
Journal | Technology Analysis and Strategic Management |
Volume | 28 |
Issue number | 3 |
DOIs | |
Publication status | Published - 15 Mar 2016 |
Bibliographical note
Publisher Copyright:© 2015 Taylor & Francis.
Keywords
- cross-border M&A
- Emerging market firms
- institution
- technology acquisition