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International diversification and firm performance in the post-acquisition period: A resource dependence perspective

Batsakis, G and Wood, G and Azar, G and Singh, S (2018) 'International diversification and firm performance in the post-acquisition period: A resource dependence perspective.' Journal of Business Research. ISSN 0148-2963

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Abstract

Extant research indicates that the performance effect of international diversification is debatable, and to a great extent is contingent upon a number of firm- and country-specific characteristics. We argue that a critical factor determining the behaviour of the above relationship is the event of acquisition, and more specifically the conditions under which the acquisition takes place. Drawing on resource dependence theory, this paper examines the relationship between international diversification and performance (of target firms) in the post-acquisition period. We suggest that this relationship is contingent upon the size of acquisition (volume of shares acquired), and on whether the target firm has an affiliation to a business group. Utilizing a newly-created dataset comprising 164 publicly listed Indian firms for the period 2001–2015, we find support for our hypotheses.

Item Type: Article
Uncontrolled Keywords: International diversification, Firm performance, Post-acquisition, Acquisition size, Business group, Indian firms
Subjects: H Social Sciences > HD Industries. Land use. Labor
Divisions: Faculty of Social Sciences > Essex Business School
Depositing User: Elements
Date Deposited: 07 Mar 2018 15:36
Last Modified: 07 Mar 2018 15:36
URI: http://repository.essex.ac.uk/id/eprint/21647

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