Extending Industry Specialization through Cross-Border Acquisitions

Frésard, Laurent, Hege, Ulrich and Phillips, Gordon (2016) Extending Industry Specialization through Cross-Border Acquisitions. TSE Working Paper, n. 16-745, Toulouse

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Official URL: http://tse-fr.eu/pub/31294

Abstract

We investigate the role of industry specialization in horizontal cross-border merg- ers and acquisitions. We find that acquirers from more specialized industries in a country are more likely to buy foreign targets in countries that are less specialized in these same industries. The role of industry specialization in foreign acquisitions is more prevalent when contracting inefficiencies and exporting costs limit arms' length relationships. The economic gains in cross-border deals are larger when spe- cialized acquirers purchase assets in less specialized industries. These results are consistent with an internalization motive for foreign acquisitions, through which acquirers can apply localized intangibles on foreign assets.

Item Type: Monograph (Working Paper)
Language: English
Date: December 2016
Place of Publication: Toulouse
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse Capitole
Site: UT1
Date Deposited: 04 Jan 2017 11:06
Last Modified: 07 Mar 2018 13:24
OAI ID: oai:tse-fr.eu:31294
URI: http://publications.ut-capitole.fr/id/eprint/22664

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