US-CROSS-BORDER ACQUISITIONS BY JAPANESE FIRMS LESSONS TO BE LEARNED FROM THE LATE 1980s

Abstract

This research analyzes two Japanese acquisition waves to the US, one from the 1980s and the other recent one, still ongoing today. Both acquisition waves are analyzed by using institutionalization theory and management fashion research to explain these trends. For the 1980s, the numbers of articles related to Japanese acquisitions were counted in two of the leading US-newspapers and parallel ties were found to the number of deals. Compared to the 1980s, the public opinion of Americans against Japanese takeovers becomes positive. While many American in the 1980s saw Japanese firms as a threat, nowadays Japanese direct investment is seen in more favorable ways. However, Japanese firms’ behavior of acquiring US targets does not seem to have changed since the late 1980s. Furthermore, lately not only the number of the deals but also the amount of payment increased (compared to the data of late 1980s).