Do Stock Returns Around Market Announcements Win Over Expectations?

Guest Editors, who’ll judge the papers for the Award. This special issue will concentrate on the promising research theme of emerging markets; or more specifically, institutional role, the marketplace for corporate and business company and control performance. This theme is motivated by various theoretical underpinnings explored in economics, international business, strategic management, and accounting literature. A common debate is that developed countries have better legal, economic, and accounting procedures while developing countries have not. These long-term organization strategies have a significant impact on various areas of firm performance, including accounting performance, marketing, operational excellence, and individual capital. Unfortunately the impact of the institutional environment on the market for mergers and acquisitions (negotiation and post-merger levels) is lacking in the current literature.

Motivated by these factors, this special concern aims to study the relationship between institutional role and the accounting performance of firms taking part in local and foreign offers. Studies that carry out critical analysis, comparative observation, empirical screening, and longitudinal case investigations relating to the aforementioned theme are especially welcome. Importantly, further research must establish a coherent relation between empirical findings and extant theories. For instance, do clashes between two owners in an international or firm or disagreement between acquirer and focus on employees in the post-merger stage adversely affect the efficiency of the firm? Likewise, do changes in the ruling politics party and new authorities formations favor the marketplace for corporate and business control deals?

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Do stock earnings around market announcements win over expectations? Submissions exploring the role of public administration and judicial systems in merger and acquisition legal procedures and other institutional-related subjects are welcome. In particular, how exactly do corruption and political interference in the market to be inspired by the host country for inbound acquisition transactions? So how exactly does a bilateral trade agreement between the host and home country affect direct international investments and acquisitions? Are friendly relations, equal economic status, similar cultural attributes, and sharing the same continent really an issue in border-crossing investments?

Do we have a better proper business model for making an entry into emerging nations while conquering institutional barriers? Overall, documents should reflect solid participation/performance with regard to corporate control offers. Bris, A., & Cabolis, C. (2008). The value of investor protection: firm proof from cross-border mergers. Chapman, K. (2003). Cross-border mergers/acquisitions: a review and research plan.

Erel, I., Liao, R. C., & Weisbach, M. S. (2012). Determinants of cross-border acquisitions and mergers. Hassan, I., & Ghauri, P. N. (2014). Mergers and acquisitions failures. Ketkar, S. (2012). Institutional development, financial liberalization and firm internationalization. Lebedev, S., Peng, M. W., Xie, E., & Stevens, C. E. (2014). Acquisitions and Mergers in and out of rising economies.

Journal of World Business, In press. Lucas, R. E. (1990). Why doesn’t capital stream from rich to poor countries. Martynova, M., & Renneboog, L. (2008). A hundred years of corporate and business takeovers: What have we learned and where do we stand? North, D. C. (1990). Institutions, Institutional Change, and Economic Performance. Cambridge and New York: Cambridge University Press.