TY - CHAP
T1 - Market reaction to cross-border acquisitions by Japanese firm
AU - Saito, Takuji
PY - 2017/5/11
Y1 - 2017/5/11
N2 - 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.
AB - 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.
KW - Corporate governance
KW - Cross-border mergers and acquisitions
KW - Japanese firms
UR - http://www.scopus.com/inward/record.url?scp=85033338636&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85033338636&partnerID=8YFLogxK
U2 - 10.1007/978-981-10-3863-1_10
DO - 10.1007/978-981-10-3863-1_10
M3 - Chapter
AN - SCOPUS:85033338636
SN - 9789811038624
SP - 201
EP - 224
BT - Competition, Innovation, and Growth in Japan
PB - Springer Singapore
ER -