Contracting Costs and Information Asymmetry Reduction in Cross-Border M&A

Journal of Management Studies

Volumn 48, Issue 3, 2011, Pages 568-590

  Boeh, Kevin K ^a  

^a PACIFIC LUTHERAN UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 79953050984     PISSN: 00222380     EISSN: 14676486     Source Type: Journal    
DOI: 10.1111/j.1467-6486.2010.00938.x     Document Type: Article

References (56)

1. Akerlof, G. A. (1970). 'The market for "lemons": quality uncertainty and the market mechanism'. Quarterly Journal of Economics, 84, 488-500.
2. Allen, L., Jagtiani, J., Peristiani, S. and Saunders, A. (2004). 'The role of bank advisors in mergers and acquisitions'. Journal of Money, Credit, and Banking, 36, 197-224.
3. Baron, R. M. and Kenny, D. A. (1986). 'The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations'. Journal of Personality and Social Psychology, 51, 1173-82.
4. Bartlett, C. A. and Ghoshal, S. (1998). Managing across Borders: The Transnational Solution, 2nd edition. Boston, MA: Harvard Business School Press.
5. Birkinshaw, J., Bresman, H. and Hakanson, L. (2000). 'Managing the post-acquisition integration process: how the human integration and task integration processes interact to foster value creation'. Journal of Management Studies, 37, 395-425.
6. Brouthers, K. D. (2002). 'Institutional, cultural and transaction cost influences on entry mode choice and performance'. Journal of International Business Studies, 33, 203-21.
7. Brouthers, K. D. and Brouthers, L. E. (2003). 'Why service and manufacturing entry mode choices differ: the influence of transaction cost factors, risk and trust'. Journal of Management Studies, 40, 1179-204.
8. Burns, N. A., Francis, B. and Hasan, I. (2007). 'Cross-listing and legal bonding: evidence from mergers and acquisitions'. Journal of Banking & Finance, 31, 1003-31.
9. Caves, R. E. (1971). 'International corporations: the industrial economics of foreign investment'. Economica, 38, 1-27.
10. Coase, R. H. (1937). 'The nature of the firm'. Economica, 4, 386-405.
11. Cohen, J. (1992). 'A power primer'. Psychological Bulletin, 112, 155-9.
12. Cohen, J., Cohen, P., West, S. and Aiken, L. (2003). Applied Multiple Regression/Correlation Analysis for the Behavioral Sciences, 3rd edition. Mahwah, NJ: Lawrence Erlbaum Associates.
13. Corwin, S. A. and Schultz, P. (2005). 'The role of IPO underwriting syndicates: pricing, information production, and underwriter competition'. Journal of Finance, 60, 443-86.
14. Cramton, P. C. (1991). 'Dynamic bargaining with transaction costs'. Management Science, 37, 1221-33.
15. Cross, J. G. (1969). The Economics of Bargaining. New York: Basic Books.
16. Dahlman, C. J. (1979). 'The problem of externality'. Journal of Law & Economics, 22, 141-62.
17. Datta, D. K., Pinches, G. E. and Narayanan, V. K. (1992). 'Factors influencing wealth creation from mergers and acquisitions: a meta-analysis'. Strategic Management Journal, 13, 67-84.
18. Doukas, J. (1995). 'Overinvestment, Tobin's Q and gains from foreign acquisitions'. Journal of Banking and Finance, 19, 1285-303.
19. Doukas, J. and Travlos, N. G. (1988). 'The effect of corporate multinationalism on shareholders' wealth: evidence from international acquisitions'. Journal of Finance, 43, 1161-75.
20. Eden, L. and Miller, S. R. (2001). Opening the Black Box: Multinationals and the Costs of Doing Business Abroad. Washington, DC: Academy of Management Annual Meeting.
21. Eun, C. S., Kolodny, R. and Scheraga, C. (1996). 'Cross-border acquisitions and shareholder wealth: tests of the synergy and internalization hypotheses'. Journal of Banking and Finance, 20, 1559-82.
22. Gatignon, H. and Anderson, E. (1988). 'The multinational corporation's degree of control over foreign subsidiaries: an empirical test of a transaction cost explanation'. Journal of Law, Economics, & Organization, 4, 305-36.
23. Gulati, R. (1995). 'Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances'. Academy of Management Journal, 38, 85-112.
24. Hagedoorn, J. and Sadowski, B. (1999). 'The transition from strategic technology alliances to mergers and acquisitions: an exploratory study'. Journal of Management Studies, 36, 87-107.
25. Hansen, R. S. (1987). 'A theory for the choice of exchange medium in mergers and acquisitions'. Journal of Business, 60, 75-95.
26. Heeley, M. B., King, D. R. and Covin, J. G. (2006). 'Effects of firm R&D investment and environment on acquisition likelihood'. Journal of Management Studies, 43, 1513-35.
27. Hunter, W. C. and Jagtiani, J. (2003). 'An analysis of advisor choice, fees, and effort in mergers and acquisitions'. Review of Financial Economics, 12, 65-81.
28. Hunter, W. C. and Walker, M. B. (1990). 'An empirical examination of investment banking merger fee contracts'. Southern Economic Journal, 56, 1117-30.
29. Johanson, J. and Vahlne, J.-E. (1977). 'The internationalization process of the firm - a model of knowledge development and increasing foreign market commitments'. Journal of International Business Studies, 8, 23-32.
30. Kesner, I. F., Shapiro, D. L. and Sharma, A. (1994). 'Brokering mergers: an agency theory perspective on the role of representatives'. Academy of Management Journal, 37, 703-21.
31. King, D. R., Dalton, D. R., Daily, C. M. and Covin, J. G. (2004). 'Meta-analysis of post-acquisition performance: indications of unidentified moderators'. Strategic Management Journal, 25, 187-200.
32. Kogut, B. (1991). 'Joint ventures and the option to expand and acquire'. Management Science, 37, 19-33.
33. Kogut, B. and Singh, H. (1988). 'The effect of national culture on the choice of entry mode'. Journal of International Business Studies, 19, 411-32.
34. Lee, T.-J. and Caves, R. E. (1998). 'Uncertain outcomes of foreign investment: determinants of the dispersion of profits after large acquisitions'. Journal of International Business Studies, 29, 563-81.
35. Long, J. S. and Ervin, L. H. (2000). 'Using heteroscedasticity consistent standard errors in the linear regression model'. American Statistician, 54, 217-24.
36. Markides, C. C. and Ittner, C. D. (1994). 'Shareholder benefits from corporate international diversification: evidence from U.S. international acquisitions'. Journal of International Business Studies, 25, 343-66.
37. McGrath, R. G. (1997). 'A real options logic for initiating technology positioning investments'. Academy of Management Review, 22, 974-96.
38. McLaughlin, R. M. (1990). 'Investment-banking contracts in tender offers: an empirical analysis'. Journal of Financial Economics, 28, 209-32.
39. Meyer, K. E. (2006). 'Globalfocusing: from domestic conglomerates to global specialists'. Journal of Management Studies, 43, 1109-44.
40. Myers, S. C. and Majluf, N. S. (1984). 'Corporate financing and investment decisions when firms have information that investors do not have'. Journal of Financial Economics, 13, 187-222.
41. Park, C. (2002). 'The effects of prior performance on the choice between related and unrelated acquisitions: implications for the performance consequences of diversification strategy'. Journal of Management Studies, 39, 1003-19.
42. Poppo, L. and Zenger, T. (2002). 'Do formal contracts and relational governance function as substitutes or complements?'. Strategic Management Journal, 23, 707-25.
43. Porter, M. E. (1990). The Competitive Advantage of Nations. New York: Free Press.
44. Powell, R. G. (1997). 'Modelling takeover likelihood'. Journal of Business Finance & Accounting, 24, 1009-30.
45. Reuer, J. J., Shenkar, O. and Ragozzino, R. (2004). 'Mitigating risk in international mergers and acquisitions: the role of contingent payouts'. Journal of International Business Studies, 35, 19-32.
46. Rodriquez, P., Uhlenbruck, K. and Eden, L. (2005). 'Government corruption and the entry strategies of multinationals'. Academy of Management Review, 30, 383-96.
47. Servaes, H. and Zenner, M. (1996). 'The role of investment banks in acquisitions'. Review of Financial Studies, 9, 787-815.
48. Shaver, J. M. (2005). 'Testing for mediating variables in management research: concerns, implications, and alternative strategies'. Journal of Management, 31, 330-53.
49. Thomson Reuters Financial (2010). 'SDC platinum M&A database'. Available at: (accessed February 2010).
50. Travlos, N. G. (1987). 'Corporate takeover bids, methods of payment, and bidding firms' stock returns'. Journal of Finance, 42, 943-63.
51. UNCTAD (2009). World Investment Report 2009. New York and Geneva: United Nations Conference on Trade and Development (UNCTAD).
52. Williamson, O. E. (1975). Markets and Hierarchies, Analysis and Antitrust Implications: A Study in the Economics of Internal Organization. New York: Free Press.
53. Williamson, O. E. and Ouchi, W. G. (1981). 'The markets and hierarchies and visible hand perspectives'. In Van de Ven, A. and Joyce, W. F. (Eds), Perspectives on Organizational Design and Behavior. New York: John Wiley, 347-406.
54. Zaheer, S. (1995). 'Overcoming the liability of foreignness'. Academy of Management Journal, 38, 341-63.
55. Zajac, E. J. and Olsen, C. P. (1993). 'From transaction cost to transactional value analysis: implications for the study of interorganizational strategies'. Journal of Management Studies, 30, 131-45.
56. Zhao, H., Luo, Y. and Suh, T. (2004). 'Transaction cost determinants and ownership-based entry mode choice: a meta-analytical review'. Journal of International Business Studies, 35, 524-44.