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Cross-border opportunity sets: An international empirical study based on ownership types

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  • Ang, James
  • Knill, April
  • Mauck, Nathan
Abstract
This paper is the first, to our knowledge, to make the distinction between the investment opportunity set of real assets versus portfolio securities. We perform a large scale formal investigation of the investment opportunity set in global acquisitions based on ownership type over the period of 1985–2012. Compared to private acquirers, government acquirers have a much reduced investment opportunity set. Government acquirers invest in fewer target nations and industries, settle for smaller stakes, invest in countries with lower quality legal institutions and in nations with which political relations are more positive and see a 50% higher deal failure rate.

Suggested Citation

  • Ang, James & Knill, April & Mauck, Nathan, 2017. "Cross-border opportunity sets: An international empirical study based on ownership types," Global Finance Journal, Elsevier, vol. 33(C), pages 1-26.
    • Handle: RePEc:eee:glofin:v:33:y:2017:i:c:p:1-26
    DOI: 10.1016/j.gfj.2016.07.001
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    Cited by:

    1. Amar, J. & Lecourt, C. & Carpantier, J.F., 2022. "GCC Sovereign Wealth Funds: Why do they take control?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 77(C).
    2. J. Amar & M. Arouri & G. Dufrénot & C. Lecourt, 2024. "Determinants of partial versus full cross-border acquisitions for Sovereign Wealth Funds," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 160(2), pages 509-539, May.
    3. Zhang, Wenjia & Mauck, Nathan, 2018. "Government-affiliation, bilateral political relations and cross-border mergers: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 51(C), pages 220-250.
    4. Nathan Mauck & S. McKay Price, 2017. "Determinants of Foreign Versus Domestic Real Estate Investment: Property Level Evidence from Listed Real Estate Investment Firms," The Journal of Real Estate Finance and Economics, Springer, vol. 54(1), pages 17-57, January.

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    More about this item

    Keywords

    International; Mergers and acquisitions; Government ownership;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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