AIB 2012 Conference Proceedings - Academy of International ...

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2001-2011 and examines whether cross-border acquisitions will create value for acquiring firms' shareholders
and also examines the impact of institutional distance between acquiring firms' home countries and target firms'
countries on such values. I find that acquiring targets from more advanced economies will create greater values
for acquiring firms' shareholders. Instead of using resource-based view and industry-based view, this study
employs an institution-based view to explain the mechanisms. Also, limitations and future research directions
are discussed. (For more information, please contact: Yinuo Tang, University of Pittsburgh, USA:
tangyn04@gmail.com)
Do Institutional Factors Still affect M&A Markets in Integrated Regions of the World
Caterina Moschieri, IE Business School / Universidade Católica Portuguesa
Roberto Ragozzino, University of Texas at Dallas
Jose Manuel Campa, IESE
This paper raises the question of whether regional integration has increased the volume and improved the
efficiency of the market for cross-border mergers and acquisitions. More precisely, using the European Union as
the backdrop for our investigation, we examine whether the effects of country-level barriers to cross-border
M&A have weakened as integration has developed, thereby creating a more fluid market for corporate
resources. Overall, the results do not show convincing support for this idea, revealing that despite on-going
integration efforts in the region, M&A activity still suffers from country-specific challenges. A number of
implications of these findings are discussed. (For more information, please contact: Caterina Moschieri, IE
Business School / Universidade Católica Portuguesa, Spain: caterina.moschieri@ie.edu)
Cross-Border Mergers and Domestic Wages: Integrating 'Postitive Spillover Effects' and 'Negative Bargaining
Effects'
Joseph Clougherty, University of Illinois at Urbana-Champaign and CEPR-London
Klaus Gugler, Vienna University of Economics and Business
Lars Sørgard, Norwegian School of Economics
Two literature camps exist concerning cross-border merger activity's impact on domestic wages: one focusing
on positive-spillover-effects; the other focusing on negative-bargaining-effects. Motivated by scarce theoretical
scholarship spanning these literatures, we nest both mechanisms in a single conceptual framework, and predict
that ‘spillover' (‘bargaining') effects are more dominant under low (high) unionization rates and with inward
(outward) cross-border merger activity. Employing comprehensive US industrial sector panel-data (1986-2001)
on wages, unionization and mergers, we find support for our propositions as cross-border merger activity
generates wage decreases when unionization rates are high and when cross-border merger activity is outward.
(For more information, please contact: Joseph Clougherty, University of Illinois at Urbana-Champaign and CEPR-
London, USA: jaclough@illinois.edu)
Session: 1.4.6 - Competitive
Track: 3 - IB Theory, FDI, and Entry Mode
Internationalization Processes
Presented On: July 1, 2012 - 14:30-15:45
Chair: Peter W. Liesch, University of Queensland
Overcoming Liabilities to Accelerate the Speed of International Rollout of New Product Areas
Thomas Hutzschenreuter, WHU
Martin Hammes, WHU
AIB 2012 Conference Proceedings
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