Entry mode choice: drivers of partial vs full acquisitions in international M&A

Abstract

The main goal of this thesis is to assess and identify the main drivers of entry mode choice in international M&A. Three main direct factors (Cultural distance; acquirer R&D intensity and industry relatedness) and one indirect (Previous Acquisition Experience as a moderator of the effect of cultural distance in full acquisition probability) were derived. By using a sample of 496 US-based deals from 1995 to 2018, findings suggest that cultural distance between the acquirer and target firms and R&D intensity of the acquirer are relevant to the decision between opting for a full acquisition or a partial one. Nevertheless, it was not possible to achieve significance regarding the industry relatedness effect and the moderator effect of previous experience.