Market reaction to cross-border acquisitions by Japanese firm

Research output: Chapter in Book/Report/Conference proceedingChapter

1 Citation (Scopus)


This study analyzes the effects of the acquisition of foreign firms by Japanese firms on the shareholder value. I estimate the market reaction to 99 announcements of cross-border acquisitions by Japanese firms valued above 50 billion yen between 1996 and 2016. In contrast to the prevailing notion that Japanese firms are not good at overseas acquisitions, I find that the market reaction to the announcement of acquisitions is not negative. In addition, the institutional characteristics and cultural differences of the target-firm country affect returns. The market reacts positively to the acquisition of firms located in countries with weak shareholder protection and that are culturally distant.

Original languageEnglish
Title of host publicationCompetition, Innovation, and Growth in Japan
PublisherSpringer Singapore
Number of pages24
ISBN (Electronic)9789811038631
ISBN (Print)9789811038624
Publication statusPublished - 2017 May 11


  • Corporate governance
  • Cross-border mergers and acquisitions
  • Japanese firms

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)


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