@article { , title = {The Effects of Cross-border and Cross-industry Mergers and Acquisitions on Home-region and Global Multinational Enterprises}, abstract = {We examine the effects of international and product diversification through mergers and acquisitions (M\&As) on the firm's risk-return profile. We identify the rewards from different types of M\&As and investigate whether becoming a global firm is a value-enhancing strategy. Drawing on the theoretical work of Vachani (Journal of International Business Studies, 22 (1991), pp. 307-222) and on Rugman and Verbeke's (Journal of International Business Studies, 35 (2004), pp. 3-18) metrics, we classify firms according to their degree of international and product diversification. To account for the endogeneity of M\&As, we develop a panel vector autoregression. We find that global and host-region multinational enterprises benefit from cross-border M\&As that reinforce their geographical footprint. Cross-industry M\&As enhance the risk-return profile of home-region firms. This effect depends on the degree of product diversification. Hence there is no value-enhancing M\&A strategy for home-region and bi-regional firms to become 'truly global'. © 2013 British Academy of Management.}, doi = {10.1111/1467-8551.12023}, eissn = {1467-8551}, issn = {1045-3172}, issue = {SUPPL.1}, journal = {British Journal of Management}, pages = {S116-S132}, publicationstatus = {Published}, publisher = {Wiley}, url = {https://uwe-repository.worktribe.com/output/822451}, volume = {25}, keyword = {Innovation, Operations Management and Supply, effects, cross-border, cross-industry, home-region, global, multinational entreprises}, year = {2014}, author = {Kling, Gerhard and Ghobadian, Abby and Hitt, Michael A. and Weitzel, Utz and O'Regan, Nicholas} }