Performance of domestic and cross-border acquisitions: Empirical evidence from Russian acquirers

Journal of Comparative Economics

Volumn 40, Issue 3, 2012, Pages 413-437

  Bertrand, Olivier ^a,b   Betschinger, Marie Ann ^c  

^a SKEMA BUSINESS SCHOOL   (France)

^b ST PETERSBURG STATE UNIVERSITY   (Russian Federation)

^c NATIONAL RESEARCH UNIVERSITY HIGHER SCHOOL OF ECONOMICS   (Russian Federation)

Author keywords

Emerging countries; FDI; M A; Restructuring; Russia

Indexed keywords

EID: 84864146686     PISSN: 01475967     EISSN: 10957227     Source Type: Journal    
DOI: 10.1016/j.jce.2011.11.003     Document Type: Article

References (85)

1. Ahuja Gautam, Katila Riitta Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study. Strategic Management Journal 2001, 22(3):197-220.
2. Amihud Yakov, Lev Baruch Risk reduction as a managerial motive for conglomerate mergers. Bell Journal of Economics 1981, 12:605-617.
3. Anderson Theodore W., Hsiao Cheng Formulation and estimation of dynamic models using panel data. Journal of Econometrics 1982, 18:47-82.
4. Andrade Gregor, Mitchell Mark, Stafford Erik New evidence and perspectives on mergers. Journal of Economic Perspectives 2001, 15:103-120.
5. Arellano Manuel, Bond Stephen Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies 1991, 58:277-297.
6. Arellano Manuel, Bover Olympia Another look at the instrumental variable estimation of error-components models. Journal of Econometrics 1995, 68:29-51.
7. Arnold Jens, Javorcik Beata Gifted kids or pushy parents? Foreign direct investment and plant productivity in Indonesia?. Journal of International Economics 2009, 79(1):42-53.
8. Aybar Bulent, Ficici Aysun Cross-border acquisitions and firm value: an analysis of emerging-market multinationals. Journal of International Business Studies 2009, 40:1317-1338.
9. Barba Navaretti Giorgio, Castellani Davide, Disdier Anne-Celia How does investing in cheap labour countries affect performance at home? Firm-level evidence from France and Italy. Oxford Economic Papers 2010, 62(2):234-260.
10. Barkema Harry, Schijven Mario How do firms learn to make acquisitions? A review of past research and an agenda for the future. Journal of Management 2008, 34:594-634.
11. Berkowitz Daniel, Jackson John Entrepreneurship and the evolution of income distributions in Poland and Russia. Journal of Comparative Economics 2006, 34:338-356.
12. Bernheim Douglas, Whinston Michael Multimarket contact and collusive behaviour. RAND Journal of Economics 1990, 21(1):1-26.
13. Bertrand Olivier Effects of foreign acquisitions on R&D activity: evidence from firm-level data for France. Research Policy 2009, 38(6):1021-1031.
14. Bertrand Olivier, Zitouna Habib Trade liberalization and industrial restructuring: the role of cross-border mergers and acquisitions. Journal of Economics and Management Strategy 2006, 15:479-515.
15. Bertrand Olivier, Zuniga Pluvia R&D and M&A: are cross-border M&As different? An investigation of OECD countries. International Journal of Industrial Organization 2006, 24:401-423.
16. Blundell Richard, Bond Stephen Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics 1998, 87:115-143.
17. Blundell Richard, Costa Dias Monica Evaluation methods for non-experimental data. Fiscal Studies 2000, 21:427-468.
18. Breinlich Holger Trade liberalization and industrial restructuring through mergers and acquisitions. Journal of International Economics 2008, 76:254-266.
19. Bridge Gavin Global production networks and the extractive sector: governing resource-based development. Journal of Economic Geography 2008, 8:389-419.
20. Caliendo Marco, Kopeinig Sabine Some practical guidance for the implementation of propensity score matching. Journal of Economic Surveys 2008, 22(1):31-72.
21. Caves Richard Mergers, takeovers, and economic efficiency. International Journal of Industrial Organization 1989, 7:151-174.
22. Chari Anusha, Paige Ouimet, Linda Tesar The value of control in emerging markets. The Review of Financial Studies 2010, 23:1741-1770.
23. Chernykh Lucy, Liebenberg Ivonne, Macias Antonio, 2010. Changing Direction: Cross Border Acquisitions by Emerging Market Firms, Mimeo.
24. Dehejia Rajeev, Wahba Sadek Propensity score-matching methods for nonexperimental causal studies. Review of Economics and Statistics 2002, 84(1):151-161.
25. Demsetz Harold Industry structure, market rivalry, and public policy. Journal of Law and Economics 1973, 16:1-9.
26. Denis David, Denis Diane, Yost Keven Global diversification, industrial diversification, and firm value. Journal of Finance 2002, 57(5):1951-1979.
27. Desai Mihir, Foley Fritz, Hines James Domestic effects of the foreign activities of US multinationals. American Economic Journal: Economic Policy 2009, 1(1):181-203.
28. Dittman Ingolf, Maug Ernst, Schneider Christoph Bankers on the boards of German firms: what they do, what they are worth, and why they are (still) there. Review of Finance 2010, 14:35-71.
29. Djankov Simeon, Murrell Peter Enterprise restructuring in transition: a quantitative survey. Journal of Economic Literature 2002, 40:739-792.
30. Dutta Shantanu, Jog Vijay The long-term performance of acquiring firms: a re-examination of an anomaly. Journal of Banking and Finance 2009, 33:1400-1412.
31. Flores Carlos, Mitnik Oscar, 2009. Evaluating Nonexperimental Estimators for Multiple Treatments: Evidence from Experimental Data. Discussion Paper 4451. Bonn, IZA.
32. Francis Bill, Hasan Iftekhar, Sun Xian Financial market integration and the value of global diversification: evidence for US acquirers in cross-border mergers and acquisitions. Journal of Banking and Finance 2008, 32(8):1522-1540.
33. Fuller Kathleen, Netter Jeffry, Stegemoller Mike What do returns to acquiring firms tell us? Evidence from firms that make many acquisitions. Journal of Finance 2002, 57:1763-1794.
34. Fumagalli Eileen, Vasconcelos Helder Sequential cross-border mergers. International Journal of Industrial Organization 2009, 27(2):175-187.
35. Geroski, Paul, 1992. Economic restructuring in Europe and the market for corporate control in cool. In: Neven, D., Walter, I. (Eds.), European Industrial Restructuring in the 1990s. Macmillan, London.
36. Girma Sourafel, Gorg Holger Evaluating the foreign ownership wage premium using a difference-in-differences matching approach. Journal of International Economics 2007, 72(1):97-112.
37. Goltsblat, 2010. A New Dawn in Dealmaking - A Report on Russian M&A Activity.
38. Granger Clive Investing causal relations by econometric models and cross-spectral methods. Econometrica 1969, 37:424-438.
39. Gugler Klaus, Yurtoglu Burcin The effects of mergers on company employment in the USA and Europe. International Journal of Industrial Organization 2004, 22(4):481-502.
40. Gugler Klaus, Mueller Dennis, Yurtoglu Burcin, Zulehner Christine The effects of mergers: an international comparison. International Journal of Industrial Organization 2003, 21:625-653.
41. Hakkala Katherina, Heyman Fredrik, Sjöholm Fredrik Cross-border acquisitions, multinationals and wage elasticities. Review of World Economics 2010, 146(2):263-280.
42. Haleblian Jerayr, Devers Cynthia, McNamara Gerry, Carpenter Mason, Davison Robert Taking stock of what we know about mergers and acquisitions: a review and research agenda. Journal of Management 2009, 35:469-502.
43. Hannan Michael, Freeman John Structural inertia and organisational change. American Sociological Review 1984, 49:149-164.
44. Harford Jarrad Corporate cash reserves and acquisitions. Journal of Finance 1999, 59(6):1969-1997.
45. Harris Robert, Ravenscraft David The role of acquisitions in foreign direct investment: evidence from the US stock market. The Journal of Finance 1991, 46:825-844.
46. Harris Richard, Robinson Catherine The effect of foreign acquisitions on total factor productivity: plant-level evidence from UK manufacturing, 1987-1992. Review of Economics and Statistics 2002, 84(3):562-568.
47. Harrison, Selina, 2011. Prospects for M&A in the BRIC Countries. The Financier Worldwide, February.
48. Head Keith, Ries John Rationalization effects of tariff reductions. Journal of International Economics 1999, 47(2):295-320.
49. Healy Paul, Palepu Krishna, Ruback Richard Does corporate performance improve after mergers?. Journal of Financial Economics 1992, 31:135-175.
50. Henisz Witold The institutional environment for multinational investment. Journal of Law, Economics and Organization 2000, 16:334-364.
51. Jensen Michael Agency costs of free cash flow, corporate finance and takeovers. American Economic Review 1986, 76:323-329.
52. Kamien Morton, Zang Israel Monopolization by sequential acquisition. The Journal of Law, Economics, and Organization 1993, 9(2):205-229.
53. Kovandzic Tomislav, Kleck Gary, Schaffer Mark, 2005. Gun Prevalence, Homicide Rates and Causality: A GMM Approach to Endogeneity Bias. CEPR Discussion Paper 5357. Center for Economic Policy Research, London.
54. Laamanen Tomi, Keil Thomas Performance of serial acquirers: toward an acquisition program perspective. Strategic Management Journal 2008, 29:663-672.
55. Lang Larry, Stulz Rene, Walkling Ralph A test of the free cash-flow hypothesis: the case of bidder returns. Journal of Financial Economics 1991, 29:315-335.
56. Lechner, Michael, 2007. Matching estimating of dynamic treatment models: some practical issues. In: Millimet, D., Smith, J., Vytlacil, E. (Eds.), Modelling and Evaluating Treatment Effects in Econometrics, Advances in Econometrics, vol. 21, JAI Press.
57. Luo Yadong, Tung Rosalie International expansion of emerging market enterprises: a springboard perspective. Journal of International Business Studies 2007, 38:481-498.
58. MacKinlay Craig A. Event Studies in Economics and Finance. Journal of Economic Literature. 1997, 35(1):13-39.
59. Markides Constatinos, Ittner Christopher Shareholder benefits from corporate international diversification: evidence from US international acquisitions. Journal of International Business Studies 1994, 25:343-366.
60. Martynova Marina, Renneboog Luc A century of corporate takeovers: what have we learned and where do we stand?. Journal of Banking and Finance 2008, 32:2148-2177.
61. Martynova Marina, Renneboog Luc The performance of the European market for corporate control: evidence from the 5th takeover wave. European Financial Management 2011, 17(2):208-259.
62. Mc Guckin, Robert, Nguyen, Sang, Reznek, Arnold, 1995. The Impact of Ownership Change on Employment, Wages and Labour Productivity in US Manufacturing 1977-1987. Center for Economic Studies, US Bureau of Census, pp. 95-98.
63. Megginson William, Netter Jeffry From state to market: a survey of empirical studies on privatization. Journal of Economic Literature 2001, 39(2):321.
64. Moeller Sara, Schlingemann Frederik Global diversification and bidder gains: a comparison between cross-border and domestic acquisitions. Journal of Banking and Finance 2005, 29:533-564.
65. Moeller Sara, Schlingemann Frederik, Stulz Rene Firm size and the gains from acquisitions. Journal of Financial Economics 2004, 73:201-228.
66. Morck Randall, Yeung Bernard Internalization, an event study test. Journal of International Economics 1992, 33:41-56.
67. Mueller Dennis The Dynamics of Company Profits: An International Comparison 1990, Cambridge University Press, Cambridge.
68. Myers Stewart, Majluf Nicolas Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics 1984, 13:187-221.
69. Nilssen Tore, Sorgard Lars Sequential horizontal mergers. European Economic Review 1998, 42:1683-1702.
70. Pissarides Francesca, Singer Miroslav, Svejnar Jan Objectives and constraints of entrepreneurs: evidence from small and medium size enterprises in Russia and Bulgaria. Journal of Comparative Economics 2003, 31:503-531.
71. Porter Michael The Competitive Advantage of Nations 1990, The Free Press, New York.
72. Radygin Aleksandr The Russian mergers and acquisitions market: stages, features, and prospects. Problems of Economic Transition 2010, 52(10):65-95.
73. Ravenscraft David, Scherer Frederic.M. The profitability of mergers. International Journal of Industrial Organisation 1989, 7:101-116.
74. Rodrik Dani, 2004. Industrial Policy for the Twenty-First Century. CEPR Discussion Paper 4767.
75. Roller Lars-Hendrick, Stennek Johan, Verboven Frank Efficiency gains from mergers. European Economy 2001, 5:31-128.
76. Roodman David, 2006. How to do xtabond2: An Introduction to "Difference" and "System" GMM in Stata. Center for Global Development Working Paper 103.
77. Roodman David A note on the theme of too many instruments. Oxford Bulletin of Economics and Statistics 2009, 71:135-158.
78. Salant Stephen, Switzer Sheldon, Reynolds Robert Losses from horizontal merger: the effects of an exogenous change in industry structure on Cournot-Nash equilibrium. Quarterly Journal of Economics 1983, 98:185-199.
79. Shaver Myles Accounting for endogeneity when assessing strategy performance: does entry mode choice affect FDI survival?. Management Science 1998, 44(4):571-585.
80. Shleifer Andrei, Vishny Robert Management entrenchment: the case of manager specific investments. Journal of Financial Economics 1989, 25:123-140.
81. Stiebale Joel, Reize Frank The impact of FDI through mergers and acquisitions on innovation in target firms. International Journal of Industrial Organization 2011, 29:155-167.
82. UNCTAD, 2000. World Investment Report: Cross-Border Mergers and Acquisitions and Development. United Nations, New York and Geneva.
83. UNCTAD, 2010. World Investment Report: Investing in a Low Carbon Economy. United Nations, New York and Geneva.
84. Vickers John, Yarrow George Privatization: An Economic Analysis 1988, MIT Press, Cambridge, MA.
85. Windmeijer Frank A finite sample correction for the variance of linear two-step GMM estimators. Journal of Econometrics 2005, 126(1):25-51.