S-Space College of Business Administration/Business School (경영대학/대학원) Dept. of Business Administration (경영학과) Theses (Master's Degree_경영학과)
Partner Favorability and Acquisition Premia in Cross-Border M&A's
- 경영대학 경영학과
- Issue Date
- 서울대학교 대학원
- 학위논문 (석사)-- 서울대학교 대학원 : 경영학과 경영학전공, 2016. 8. 조승아.
In this paper, we examined the linkage between a firms sentiment toward the national identity of its acquisition partner and the acquisition premium paid. Using a sample of 435 cross-border M&As in 38 countries, we found that the acquisition premium is negatively associated with: 1) the degree of favorability the acquiring firm holds toward its target firms national identity
and 2) the degree of favorability the target firm holds toward its acquiring firms national identity. In addition, information asymmetricity was shown to moderate the relationship between the acquirer's favorability of the target firm and the acquisition premium. Specifically, the acquiring firms tend to rely more on their subjective favorability in unrelated acquisitions in which they lack information on the target firm. In sum, our results shed new insight on the effects of subjective favorability of national identities on acquisition premia in the context of cross-border M&As.