Learning Behavior Of Serial Cross-border Mergers And Acquisitions

Previous academic researches on the learning behavior in serial M&A dealsmainly focus on the domestic market. This study considers the cross-border situation,since cross-border M&A deals are much more complicated due to more externalfactors. The writer firstly gives a description of worldwide serial cross-border M&Adeals between2000and2011then, based on a sample of127American acquiringcompanies with511M&A deals, this research uses both univariate and multipleanalyses to find out the factors determining the performance of acquiring companies.The study finds that there exists the learning behavior in serial cross-border mergersand acquisitions. The characteristics of acquiring company itself, such as size andfinancial leverage ratio, can influence the performance of serial M&A deals.Moreover, modest attitude, adequate learning and similar experience can helpmanagers learn from previous experience, thus enhancing the probability of successfulresults. In sum, when undertaking serial cross-border mergers and acquisitions,managers, especially those from developing countries, should not ignore the effect ofthe learning factors.