Factors influenceing the share of ownership sought in cross- border acquisitions - UK perspectives

Date

2015-09-10

Advisors

Journal Title

Journal ISSN

ISSN

DOI

Volume Title

Publisher

EuroMed Research Business Institute

Type

Conference

Peer reviewed

Yes

Abstract

The aim of the paper is to investigate the factors influencing share of ownership sought in cross border acquisitions (CBAs). Drawing on multiple theoretical explanations, we develop and test hypotheses on factors influencing the share of equity sought by foreign firms in CBAs. Findings based on a sample of 1872 CBAs by UK firms show that the share of equity sought is influenced by a number of factors, including the difficulty in integrating local firm managers in culturally distant countries and size of the local firm. We contribute in existing literature by approaching the aspects of equity share in CBAs from a novel perspective of real options theory and transaction cost economics (TCE).

Description

Keywords

Cross border acquisitions, equity ownership, national culture, partial acquisition

Citation

Ahammad, M.F. et al. (2015) Factors influenceing the share of ownership sought in cross- border acquisitions - UK perspectives. 8th EuroMed Conference of the EuroMed Academy of Business September 16-18, 2015 Verona, Italy

Rights

Research Institute

Finance and Banking Research Group (FiBRe)