Technology-acquiring cross-border M&As by emerging market firms: role of bilateral trade openness

Hyungseok (David) Yoon*, Joosung J. Lee

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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 languageEnglish
Pages (from-to)251-265
Number of pages15
JournalTechnology Analysis and Strategic Management
Volume28
Issue number3
DOIs
Publication statusPublished - 15 Mar 2016

Bibliographical note

Publisher Copyright:
© 2015 Taylor & Francis.

Keywords

  • cross-border M&A
  • Emerging market firms
  • institution
  • technology acquisition

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