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Foreign acquisitions and firm performance: The moderating role of prior foreign experience

Agyei-Boapeah, Henry


Henry Agyei-Boapeah


This paper relies on a sample of 9,419 acquisitions by 1,443 UK firms during 1988 to 2014 to investigate the impact of foreign acquisitions on corporate performance. Moreover, the moderating role of firms' prior exposure to foreign markets on the foreign acquisition-performance link is explored. The paper finds that, on average, foreign acquisitions have a negative impact on corporate performance. However, the negative impact of foreign acquisitions disappears under two circumstances: (1) when domestic firms undertake foreign acquisitions; and (2) when highly experienced multinationals undertake foreign acquisitions. Collectively, the findings imply that the benefits (costs) associated with foreign acquisitions are greater (lower) for new entrants into foreign markets and for highly experienced multinationals.


Agyei-Boapeah, H. (2019). Foreign acquisitions and firm performance: The moderating role of prior foreign experience. Global Finance Journal, 42,

Journal Article Type Article
Acceptance Date Feb 7, 2018
Online Publication Date Feb 9, 2018
Publication Date 2019-11
Deposit Date Jul 5, 2021
Publicly Available Date Jul 6, 2021
Journal Global Finance Journal
Print ISSN 1044-0283
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 42
Article Number 100415
Keywords Internationalization; foreign acquisition; prior foreign experience; financial performance; M&A JEL classification: G32; G34 2
Public URL
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