Imperfect information in firm growth strategy: Three essays on M&A and FDI activities

This dissertation uses three empirical essays to address a series of research questions regarding imperfect information in firm growth strategy, focusing on firms’ merger and acquisition (M&A) and foreign direct investment (FDI) activities. Chapter 2 builds upon the acquisition motive literature and explores the acquirer’s strategic use of M&A conference calls to influence rivals’ information processing. Chapter 3 focuses on the information benefits of emulating peers’ previous foreign location choices and examines the role of variable risk references in the imitation process. Chapter 4 highlights internal governance challenges due to managerial bounded rationality and bounded reliability and investigates how the board of directors may help overcome information barriers and contribute to the value creation of knowledge-based intangible assets in cross-border M&As.