scholarly journals Do cross-border acquisitions create more shareholder value than domestic deals for firms in a mature economy? The Japanese case

2018 ◽  
Vol 15 (3-1) ◽  
pp. 268-281
Author(s):  
Kotaro Inoue ◽  
Robert Ings
Keyword(s):  
Economic Growth ◽  
Slow Growth ◽  
Shareholder Wealth ◽  
G7 Countries ◽  
Cross Border ◽  
Acquiring Firms ◽  
Target Firms ◽  
The Us ◽  
Shareholder Wealth Effect ◽  
Us Financial Crisis

In this paper, we analyse the shareholder wealth effect in domestic and cross-border acquisitions involving Japanese acquiring firms over the period from 2000 to 2010. The results of our study reveal that cross-border acquisitions create larger returns for the acquirers’ shareholders than domestic deals. Furthermore, although acquisitions of firms in G7 countries create larger value than other acquisitions in the period between 2000 and 2003, in the period between 2008 and 2010, which corresponds to a period of slow economic growth in G7 countries after the US financial crisis, acquisitions involving target firms in non-G7 countries created greater wealth gains for shareholders than deals that targeted firms in G7 countries. Our results highlight the growing importance of M&A target firms in growing markets for mature firms in advanced and slow-growth economies.

scholarly journals The slowing Growth of Global Economy: Keynesian and Neo-Classical Interpretations

2020 ◽  
Vol 99 (6) ◽  
pp. 142-152
Author(s):  
Anatoliy Bazhan ◽  
Keyword(s):  
Economic Growth ◽  
Money Demand ◽  
Economic Activity ◽  
Global Economy ◽  
Protection Policy ◽  
Cross Border ◽  
Keynesian Theory ◽  
The Us

The article outlines the reasons for the slowing growth of global economy in the last 2 years and analyzes the views of IMF and UNCTAD experts on this subject. The author concludes that the new US protection policy cannot be considered the main reason of the slowdown: the growth of US import tariffs for China and Europe does impede the economic growth in those regions, but it stimulates growth in the US and other countries whose corporations compete with Chinese producers in the US market. The author argues that the Keynesian theory gives a better explanation to the slower growth as it is attributed to lack of demand and productive investment. The article shows that the Keynesian theory needs to be corrected as well, because the liberalization of global economy distorts the connection between money demand, generated by incomes in various countries, and growth of their economies: the demand can be covered by goods produced abroad, while investment can be allocated for foreign projects. Thus, promotion of economic activity should utilize not only the traditional Keynesian recipes of financial and credit influence, but also the national customs and currency regulation, as well as respective cross border capital migration restrictions.

Cross-border mergers and acquisitions: links between acquiring firm capabilities and resources and target country location

2020 ◽  
Vol 28 (3) ◽  
pp. 355-379
Author(s):  
Ronaldo Parente ◽  
Keith James Kelley ◽  
Yannick Thams ◽  
Marcelo J. Alvarado-Vargas
Keyword(s):  
Target Firm ◽  
Firm Capabilities ◽  
Content Type ◽  
Cross Border ◽  
Acquiring Firms ◽  
Target Firms ◽  
Innovative Capabilities ◽  
Eclectic Paradigm ◽  
Country Selection ◽  
Target Country

Purpose Drawing upon the eclectic paradigm and the regulative dimension of institutional distance theory, it is posited that to understand a firms’ cross-border merger and acquisition (CBMA) location choices, it is critical to examine the acquirers’ ownership advantages. Design/methodology/approach Using a sample of CBMAs undertaken by US firms from 1999 to 2015, the paper explores the extent to which acquiring firm ownership advantages – financial and innovation capabilities – influence target firm country selection in relation to regulative distance. Findings It is shown that acquiring firms with greater innovative capabilities are likely to choose target firms in nations with less regulative distance from their home market; whereas firms with greater financial capabilities target firms in more distant nations. Originality/value This paper builds on the important research on CBMA activity, focusing on the largely neglected pre-acquisition resources in relation to the regulative distance between target firms and the acquirer.

scholarly journals ESTRUCTURA PRODUCTIVA Y CRECIMIENTO ECONÓMICO EN MÉXICO: UNA PERSPECTIVA MULTISECTORIAL

2019 ◽  
Vol 78 (309) ◽  
pp. 3 ◽  
Author(s):  
Fidel Aroche Reyes
Keyword(s):  
Economic Growth ◽  
Technical Change ◽  
Slow Growth ◽  
Economic Policies ◽  
Long Period ◽  
Us Economy ◽  
The Us ◽  
Productive Structure ◽  
Manufacturing Productivity ◽  
Structural Perspective

<p>La economía mexicana ha registrado cuatro décadas de lento crecimiento; no obstante, es razonable esperar que su estructura productiva haya cambiado en ese largo horizonte temporal como resultado del cambio técnico incorporado o de las políticas económicas centradas en la integración con la economía de Estados Unidos, entre otras causas. De acuerdo con la llamada “ley Kaldor-Verdoorn”, el crecimiento de la economía se explica por el comportamiento del producto y la productividad en el sector manufacturero. Luego, se deduce que este sector ha perdido la capacidad de generar crecimiento. En este artículo se examina esta hipótesis desde una perspectiva estructural y desde la de esa ley, estimando también los multiplicadores del producto al modo de Miyazawa.</p><p> </p><p align="center">PRODUCTIVE STRUCTURE AND ECONOMIC GROWTH IN MEXICO: A MULTISECTORAL PERSPECTIVE</p><p align="center"><strong>ABSTRACT</strong><strong></strong></p>The Mexican economy has shown four decades of slow growth; still it would be reasonable to expect changes in its productive structure along such a long period of time considered, as a result either of the embodied technical change or as a result of the economic policies, that have sought the integration with the US economy, among other causes. According to the so called “Kaldor-Verdoorn law”, growth is explained by the behaviour of both output and the manufacturing productivity; hence, in Mexico this sector must have lost its ability to induce growth in the economy as a whole. This paper examines such hypothesis from a structural perspective, considering such law, estimating also the output multipliers <em>á la mode</em> de Miyazawa.

There Is No Silver Bullet: Investment and Growth in the G7

1997 ◽  
Vol 162 ◽  
pp. 57-74 ◽  
Author(s):  
Chrys Dougherty ◽  
Dale W. Jorgenson
Keyword(s):  
Economic Growth ◽  
Relative Importance ◽  
G7 Countries ◽  
The Us ◽  
Silver Bullet

This paper considers the relative importance of investment and productivity in the growth of the G7 countries during the period 1960-89. Investment is the commitment of resources in the expectation of future returns to the investor. Productivity is identified with 'spillovers' of benefits that do not provide incentives for investment. The great preponderance of growth in the US and Canada is due to investment. Investment is more important than productivity for all of the G7 countries, except France, after 1973. Patterns of economic growth have converged for the G7 countries, but important differences remain.

scholarly journals Merger announcements and share price return: The role of the relationship between acquiring and target firms

1988 ◽  
Vol 19 (1) ◽  
pp. 1-10 ◽  
Author(s):  
R. C. Van Den Honert ◽  
G. D.I. Barr ◽  
J. F. Affleck-Graves ◽  
G. Smale
Keyword(s):  
Shareholder Wealth ◽  
Share Price ◽  
Wealth Effects ◽  
Target Firm ◽  
Distribution Of Wealth ◽  
Acquiring Firms ◽  
Average Abnormal Return ◽  
Target Firms ◽  
The Relationship

The authors examine, in a cumulative average abnormal return (CAAR) framework, the effect of four easily identifiable features of merger activity on acquirer/target shareholder wealth. The features considered are the relatedness of the acquiring and target firms involved in the merger, the relative sizes of the acquirer and target, the prior control position, and the medium of exchange. The results indicate that the relatedness of the acquirer and target firm and the prior control position are strong factors in determining the distribution of any wealth effects between the shareholders of the target and acquiring firms. The size and the medium of exchange are shown to be weaker factors in determining the distribution of wealth. In all cases it is seen that the shareholders of acquiring firms do not tend to benefit in the short term from the merger while those of the target firms show significant gains.

Vicious Cycle of Economic Growth, Pm2.5 and COVID-19 Case of G7 Countries

2020 ◽  
Author(s):  
Rıdvan Karacan
Keyword(s):  
Economic Growth ◽  
Air Pollution ◽  
Particulate Matter ◽  
Fossil Fuels ◽  
Fine Particulate Matter ◽  
Panel Cointegration ◽  
Air Pollutant ◽  
Population Exposure ◽  
Causality Analysis ◽  
G7 Countries

<p>Today, production is carried out depending on fossil fuels. Fossil fuels pollute the air as they contain high levels of carbon. Many studies have been carried out on the economic costs of air pollution. However, in the present study, unlike the former ones, economic growth's relationship with the COVID-19 virus in addition to air pollution was examined. The COVID-19 virus, which was initially reported in Wuhan, China in December 2019 and affected the whole world, has caused many cases and deaths. Researchers have been going on studying how the virus is transmitted. Some of these studies suggest that the number of virus-related cases increases in regions with a high level of air pollution. Based on this fact, it is thought that air pollution will increase the number of COVID-19 cases in G7 Countries where industrial production is widespread. Therefore, the negative aspects of economic growth, which currently depends on fossil fuels, is tried to be revealed. The research was carried out for the period between 2000-2019. Panel cointegration test and panel causality analysis were used for the empirical analysis. Particulate matter known as PM2.5[1] was used as an indicator of air pollution. Consequently, a positive long-term relationship has been identified between PM2.5 and economic growth. This relationship also affects the number of COVID-19 cases.</p><p><br></p><p><br></p><p>[1] "Fine particulate matter (PM2.5) is an air pollutant that poses the greatest risk to health globally, affecting more people than any other pollutant (WHO, 2018). Chronic exposure to PM2.5 considerably increases the risk of respiratory and cardiovascular diseases in particular (WHO, 2018). For these reasons, population exposure to (outdoor or ambient) PM2.5 has been identified as an OECD Green Growth headline indicator" (OECD.Stat).</p>

GLOBAL FINANCIAL CRISIS: THE BUBBLE EFFECT IN INDONESIA

2018 ◽  
pp. 27-33
Author(s):  
Mohammad Benny Alexandri ◽  
Raeny Dwisanti
Keyword(s):  
Financial Crisis ◽  
Stock Price ◽  
Price Index ◽  
Global Financial Crisis ◽  
Price Ratio ◽  
Sharp Decline ◽  
Book Value ◽  
The Us ◽  
Investment Opportunities ◽  
Us Financial Crisis

US and Indonesia stock markets are entering record heights without being offset by economic growthand profitability growth of their traded companies. There are several indicators for the stock marketbubble: (1) Price Ratio (Ear Ratio); (2) Price Ratio / Book (PB Ratio), the latter comparing thenominal price of one share at a market with the book value (the value of company's assets). Thecurrent PB ratio of the composite stock price index being 3.3 means that for each shares the assetvalue of which is 1 IDR, the stock would be worth 3.3 IDR. This is one of the most expensive price in the world today. Based on the above, for Indonesian stock market sharp decline is just a matter of time and waiting. This decline will be much sharper if triggered by the US financial crisis. We can also also see a bubble emerging from increasingly irrational investment attitudes. Currently, in addition to high prices for stocks and bonds, investors have started looking at investment opportunities in digital currencies. This research tries to know the potential of financial crisis and itseffect for the financial market in Indonesia. 

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