Market reaction to cross-border acquisitions by Japanese firm

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This study analyzes the effects of the acquisition of foreign firms by Japanese firms on the shareholder value. I estimate the market reaction to 99 announcements of cross-border acquisitions by Japanese firms valued above 50 billion yen between 1996 and 2016. In contrast to the prevailing notion that Japanese firms are not good at overseas acquisitions, I find that the market reaction to the announcement of acquisitions is not negative. In addition, the institutional characteristics and cultural differences of the target-firm country affect returns. The market reacts positively to the acquisition of firms located in countries with weak shareholder protection and that are culturally distant.

Original languageEnglish
Title of host publicationCompetition, Innovation, and Growth in Japan
PublisherSpringer Singapore
Pages201-224
Number of pages24
ISBN (Electronic)9789811038631
ISBN (Print)9789811038624
DOIs
Publication statusPublished - 2017 May 11

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Market reaction
Japanese firms
Cross-border acquisitions
Announcement
Shareholder value
Institutional characteristics
Shareholder protection
Cultural differences
Foreign firms

Keywords

  • Corporate governance
  • Cross-border mergers and acquisitions
  • Japanese firms

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)

Cite this

Saito, T. (2017). Market reaction to cross-border acquisitions by Japanese firm. In Competition, Innovation, and Growth in Japan (pp. 201-224). Springer Singapore. https://doi.org/10.1007/978-981-10-3863-1_10

Market reaction to cross-border acquisitions by Japanese firm. / Saito, Takuji.

Competition, Innovation, and Growth in Japan. Springer Singapore, 2017. p. 201-224.

Research output: Chapter in Book/Report/Conference proceedingChapter

Saito, T 2017, Market reaction to cross-border acquisitions by Japanese firm. in Competition, Innovation, and Growth in Japan. Springer Singapore, pp. 201-224. https://doi.org/10.1007/978-981-10-3863-1_10
Saito T. Market reaction to cross-border acquisitions by Japanese firm. In Competition, Innovation, and Growth in Japan. Springer Singapore. 2017. p. 201-224 https://doi.org/10.1007/978-981-10-3863-1_10
Saito, Takuji. / Market reaction to cross-border acquisitions by Japanese firm. Competition, Innovation, and Growth in Japan. Springer Singapore, 2017. pp. 201-224
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