This paper empirically tests whether international acquisitions -- in contrast to their domestic counterparts -- on average create value for the shareholders of acquiring firms. We find that whereas US international acquisitions in Britain and Canada create no value, US acquisitions in...

If one was to examine the academic literature for an explanation of the restructuring that we have witnessed in the last decade, the most prominent explanation to emerge would be the agency explanation. According to this explanation, firms with poor internal governance devices fail to monitor...