ACQUISITION BEHAVIOR OF EMERGING VERSUS DEVELOPED MARKET MULTINATIONALS Cover Image

ACQUISITION BEHAVIOR OF EMERGING VERSUS DEVELOPED MARKET MULTINATIONALS
ACQUISITION BEHAVIOR OF EMERGING VERSUS DEVELOPED MARKET MULTINATIONALS

Author(s): Kashif Ahmed, Ralf Bebenroth
Subject(s): Supranational / Global Economy, Business Economy / Management
Published by: Vilniaus Universiteto Leidykla
Keywords: Emerging markets multinationals (EMMs); developed market multinationals (DMMs); partial acquisitions; full acquisitions; Japan;

Summary/Abstract: The purpose of this paper is to investigate how emerging and developed market multinationals (EMMs and DMMs) differ in their acquisition behavior (vis-a-vis the choice of partial versus full acquisitions) when entering a developed market economy, Japan. We hypothesize that EMMs prefer partial acquisitions, whereas DMMs prefer full acquisitions due to what we call the country-of-origin effect. Additionally, we hypothesize that this country-of-origin effect is more pronounced for smaller firms. The results, based upon 224 strategic cross-border acquisitions in Japan, support these two hypotheses. This study contributes to the literature on EMMs.

  • Issue Year: 10/2019
  • Issue No: 19
  • Page Range: 9-30
  • Page Count: 22
  • Language: English
Toggle Accessibility Mode