Lewis, Y and Bozos, K orcid.org/0000-0003-2914-6495 (2019) Mitigating post-acquisition risk: the interplay of cross-border uncertainties. Journal of World Business, 54 (5). 100996. ISSN 1090-9516
Abstract
Do international acquisitions increase acquirers’ risk? If so, can cross-border uncertainties interact and offset such risk? The perspective of integrated risk management suggests international acquirers could mitigate their overall risk through the interplay of various levels of uncertainties. Using asset pricing to measure shifts in risk and a large sample of international acquisitions by US firms during 2000–2014, we find that acquirers can reduce their risk by trading internal and deal-level risk factors (information asymmetry and moral hazard) off against external and country-level risk factors (“liability of foreignness” and “double-layered acculturation”).
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2019 Published by Elsevier Inc. This is an author produced version of an article published in Journal of World Business. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Risk; Mergers and acquisitions; International; Cultural distance; Institutional distance |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 05 Jun 2019 12:15 |
Last Modified: | 19 Dec 2020 01:38 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.jwb.2019.100996 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:146926 |