Foreign vs Domestic Acquisitions on Financial Risk Reduction

This paper examines the role of foreign versus domestic ownership in improving the financial health of acquired firms. In particular, it explores the impact of foreign and domestic acquisitions on financial risk reduction of acquired firms in Italy and Spain over the period 2002-2010. To estimate causal relationships, we control for selection bias by applying propensity score matching techniques. Our results indicate that foreign acquisition leads to a significant and steady reduction in financial risk. In contrast, the relationship between domestic acquisition and financial risk appears to be smaller and statistically less robust

Estas son algunas de las habilidades blandas demandadas en Colombia

Este producto forma parte de una serie de infografías de divulgación científica que buscan reseñar algunas de las investigaciones más importantes en las que ha tenido participación la Universidad EAFIT, publicadas en las revistas especializadas más prestigiosas del mund

Chapter 16: Cavusgil's contribution to export marketing management and strategy

One of the early works by Cavusgil provides the initial step to developing the foundation for the export marketing literature (Cavusgil et al., 1979). This paper delineates the motives of managers to engage in exporting. The paper was shaped around the following research question: ‘What characteristics contribute to successful export activity?’ Exporters and non-export companies were compared through an empirical investigation. Management expectations about the possible contribution of export activities on a firm’s growth and market development are stated to be the primary motivations for exporting. Moreover, future prospects are shaped based on the knowledge of managers about exporting and firmspecific features. First, managers may gain knowledge about foreign markets if they are familiar with the export experiences of other firms and with export potential studies. Additionally, contacts with external change agents such as banks, US Department of Commerce field representatives and so on may provide deeper insights. Moreover, unsolicited export orders and favorable responses in trade fairs can serve as important information sources. Last, an appropriate educational background facilitates exposure to new and relevant information about foreign markets. Second, firm-specific features are related to the product, financial situation and the firm’s structure. Firms having unique products and technology are more willing to take actions in exporting. Furthermore, the amount of existing annual sales, profit aspirations of the manager and the existence of export activity are conditions that create management expectations