Investment Opportunity Sets of Real Assets: An International Empirical Study Based on Ownership Types

Ang, James and Knill, April and Mauck, Nathan (2014): Investment Opportunity Sets of Real Assets: An International Empirical Study Based on Ownership Types.

Abstract

This paper is the first, to our knowledge, to make the distinction between the investment opportunity set of real assets versus portfolio securities. We perform a large scale formal investigation of the investment opportunity set in global acquisitions based on ownership type over the period of 1985 – 2012. Compared to private acquirers, government acquirers have a much reduced investment opportunity set. Government acquirers invest in fewer target nations and industries, settle for smaller stakes, invest in countries with lower quality legal institutions and in nations with which political relations are more positive and see a 50% higher deal failure rate.

• Item Type: MPRA Paper
• Language: English
• Keywords: International; Mergers and Acquisitions; Government ownership
• Subjects: F - International Economics > F3 - International Finance; F - International Economics > F3 - International Finance > F30 - General; G - Financial Economics > G3 - Corporate Finance and Governance > G34 - Mergers ; Acquisitions ; Restructuring ; Corporate Governance; G - Financial Economics > G3 - Corporate Finance and Governance > G38 - Government Policy and Regulation

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