An analysis of cross-border acquisitions by Japanese firms from cross-country comparative analysis

2014 Fiscal Year Final Research Report

• Project/Area Number: 24530422
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Business administration
• Research Institution: Tokyo Institute of Technology
• Principal Investigator: INOUE Kotaro 東京工業大学, 社会理工学研究科, 教授 (90381904)
• Co-Investigator(Kenkyū-buntansha): SUZUKI Kazunori 早稲田大学, 商学学術院, 教授 (40338653) ; KATO Hideaki 名古屋大学, 経済学研究科, 教授 (80177435)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Keywords: 経営学 / 経営財務 / クロスボーダーM&A / 企業統治

Outline of Final Research Achievements

In this project, we prepaired four research papers which empirically analyze economics of cross-border acquisitions by Japanese firms. We find that cross-border acquisitions by Japanese acquirers are evaluated positively by Japanese stock market, the stock market positively evaluates growth potential achieved by the oversea acquisitions. We also confirm that the acquisitions are economically rational usage of cash on hand of the acquiring firms. On the other hand, we did not find supporting evidence that Japanese acquirers increase shareholder wealth or improve performance in the post-acquisition period. We also find that Japanese coporate culture of strong uncertainty avoidance results in less cross-border acquisitions and higher premium payment to reduce completion risks. The results properly explains behavior of Japanese acquirers who are categolized in the high uncertainty avoidence group.

Free Research Field

経営学