Publication Type
Journal Article
Version
acceptedVersion
Publication Date
3-2025
Abstract
This study investigates the impact of director overseas experience on firms’ cross-border acquisition decisions. We find that firms with directors who have overseas experience tend to engage in more cross-border acquisitions. This finding remains robust across various types of overseas experience. This correlation is unlikely to be influenced by omitted variable biases or driven by reverse causality, where firms deliberately employ directors with overseas experience before initiating cross-border acquisitions. Additionally, director overseas experience is associated with higher announcement returns and enhanced post-merger performance. Further analysis reveals that director overseas experience affects cross-border acquisition decisions primarily through the cultural inclusivity channel. These results suggest that director overseas experience plays a significant role in facilitating value-enhancing cross-border acquisitions.
Keywords
Board of directors, Cross-border M&As, Cultural Inclusivity, Emerging markets, Overseas Experience, Post-merger Performance
Discipline
Asian Studies | International Business | Leadership Studies
Publication
Research in International Business and Finance
Volume
75
First Page
1
Last Page
30
ISSN
0275-5319
Identifier
10.1016/j.ribaf.2024.102730
Publisher
Elsevier
Citation
LIU Chenxi and KANG, Mengyao.
Director overseas experience and cross-border acquisitions: Evidence from China. (2025). Research in International Business and Finance. 75, 1-30.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/7677
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.ribaf.2024.102730
