PERFORMANCE IN CROSS-BORDER MERGERS AND ACQUISITIONS: AN EMPIRICAL ANALYSIS OF THE BRAZILIAN CASE
The purpose of this article is to investigate whether the cross-border acquisitions made by Brazilian companies over the past 15 years have improved their financial performance. Drawing on institutional, sociocultural, and organizational learning theories, this study develops and empirically tests s...
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Fundação Getulio Vargas
2014-10-01
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Series: | RAE: Revista de Administração de Empresas |
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Online Access: | http://rae.fgv.br/sites/rae.fgv.br/files/performance_in_cross_border_mergers_and_acquisitions_an_empirical_analysis_of_the_brazilian_case.pdf |
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doaj-e47fcee462d04ef194beba875086b0052020-11-25T00:14:43ZengFundação Getulio VargasRAE: Revista de Administração de Empresas 0034-75902178-938X2014-10-01546659671PERFORMANCE IN CROSS-BORDER MERGERS AND ACQUISITIONS: AN EMPIRICAL ANALYSIS OF THE BRAZILIAN CASEAdriana Bruscato Bortoluzzo0Maria Pia de Siqueira Garcia1Dirk Michael Boehe2Hsia Hua 3Professor at Instituto de Ensino e Pesquisa – São Paulo – SP, BrazilMaster’s in Business Administration from the Instituto de Ensino e Pesquisa – São Paulo – SP, BrazilProfessor at the Adelaide Business School, University of Adelaide – Adelaide, AustraliaProfessor at Escola de Administração de Empresas de São Paulo, Fundação Getulio Vargas – São Paulo – SP, BrazilThe purpose of this article is to investigate whether the cross-border acquisitions made by Brazilian companies over the past 15 years have improved their financial performance. Drawing on institutional, sociocultural, and organizational learning theories, this study develops and empirically tests several hypotheses on the determinants of M&A performance. The results demonstrate that the cross-border acquisition moves by Brazilian companies actually improve their financial performance. Financial performance tends to be positive when the cultural distance between the countries of the acquiring and acquired companies is low to medium and when the institutional context of the acquired company is a developed one. We also found an inverted-U shape relationship between acquiring companies’ previous international M&A experience and the performance of a new cross-border operation. These findings suggest that research on international M&As should include acquirers’ M&A experience as well as the institutional characteristics of their target countries.http://rae.fgv.br/sites/rae.fgv.br/files/performance_in_cross_border_mergers_and_acquisitions_an_empirical_analysis_of_the_brazilian_case.pdfCross-border M&Ainternationalizationfinancial performanceinstitutional theoryorganizational learning. |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Adriana Bruscato Bortoluzzo Maria Pia de Siqueira Garcia Dirk Michael Boehe Hsia Hua |
spellingShingle |
Adriana Bruscato Bortoluzzo Maria Pia de Siqueira Garcia Dirk Michael Boehe Hsia Hua PERFORMANCE IN CROSS-BORDER MERGERS AND ACQUISITIONS: AN EMPIRICAL ANALYSIS OF THE BRAZILIAN CASE RAE: Revista de Administração de Empresas Cross-border M&A internationalization financial performance institutional theory organizational learning. |
author_facet |
Adriana Bruscato Bortoluzzo Maria Pia de Siqueira Garcia Dirk Michael Boehe Hsia Hua |
author_sort |
Adriana Bruscato Bortoluzzo |
title |
PERFORMANCE IN CROSS-BORDER MERGERS AND ACQUISITIONS: AN EMPIRICAL ANALYSIS OF THE BRAZILIAN CASE |
title_short |
PERFORMANCE IN CROSS-BORDER MERGERS AND ACQUISITIONS: AN EMPIRICAL ANALYSIS OF THE BRAZILIAN CASE |
title_full |
PERFORMANCE IN CROSS-BORDER MERGERS AND ACQUISITIONS: AN EMPIRICAL ANALYSIS OF THE BRAZILIAN CASE |
title_fullStr |
PERFORMANCE IN CROSS-BORDER MERGERS AND ACQUISITIONS: AN EMPIRICAL ANALYSIS OF THE BRAZILIAN CASE |
title_full_unstemmed |
PERFORMANCE IN CROSS-BORDER MERGERS AND ACQUISITIONS: AN EMPIRICAL ANALYSIS OF THE BRAZILIAN CASE |
title_sort |
performance in cross-border mergers and acquisitions: an empirical analysis of the brazilian case |
publisher |
Fundação Getulio Vargas |
series |
RAE: Revista de Administração de Empresas |
issn |
0034-7590 2178-938X |
publishDate |
2014-10-01 |
description |
The purpose of this article is to investigate whether the cross-border acquisitions made by Brazilian companies over the past 15 years have improved their financial performance. Drawing on institutional, sociocultural, and organizational learning theories, this study develops and empirically tests several hypotheses on the determinants of M&A performance. The results demonstrate that the cross-border acquisition moves by Brazilian companies actually improve their financial performance. Financial performance tends to be positive when the cultural distance between the countries of the acquiring and acquired companies is low to medium and when the institutional context of the acquired company is a developed one. We also found an inverted-U shape relationship between acquiring companies’ previous international M&A experience and the performance of a new cross-border operation. These findings suggest that research on international M&As should include acquirers’ M&A experience as well as the institutional characteristics of their target countries. |
topic |
Cross-border M&A internationalization financial performance institutional theory organizational learning. |
url |
http://rae.fgv.br/sites/rae.fgv.br/files/performance_in_cross_border_mergers_and_acquisitions_an_empirical_analysis_of_the_brazilian_case.pdf |
work_keys_str_mv |
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1725388937690611712 |