Date of Award

Spring 4-15-2019

Degree Type


Degree Name

Doctor of Philosophy (PhD)



First Advisor

Salih Tamer Cavusgil

Second Advisor

Naveen Donthu

Third Advisor

Denish Shah

Fourth Advisor

Konstantinos Bozos

Fifth Advisor

Nikolaos Dimotakis


Scholars have extensively studied the return of international mergers and acquisitions (M&As). Yet, we know little about the risk or failure of international M&As. At the pre-completion stage, around 20 percent of M&As get withdrawn, and risk, comparing to return, is a better indicator of deal failure. My dissertation essay one investigates the interplay effects of post-acquisition risk factors while my dissertation essay two examines the withdrawal of international deals through the impact of traditional institutional development and contemporary behavioral indicators at country level. Using asset pricing to measure shifts in risk and a large sample of international acquisitions by US firms during 2000-2014, essay one finds that acquirers can reduce their risk by trading internal and deal-level risk factors (information asymmetry and moral hazard) off against external and country-level risk factors (“liability of foreignness” and “double-layered acculturation”). Building on institutional theory and information asymmetry argument, essay two applies the concept of operational risk as the contingency of country governance quality and the likelihood of deal withdrawal. Operational risk provides us a contemporary measure of organizational behavior under the various “rules of the game”. Using panel data method and a sample of 8,008 cross-border deals which includes 1,744 country pairs during 1996—2016, essay two finds that acquiring country’s governance quality decreases the likelihood of deal withdrawal, and the risk mitigating effect is even stronger when the selling country has a strong governance mechanism as well, or when the acquiring country has high operational risk, or when the selling country has lower operational risk.