Abstract
This paper examines the effect of cross-border M&As conducted by Japanese firms on the growth of firms’ long-term profit. This paper divides Japanese public firms into two groups by whether these are aggressive for cross-border M&As or not and compares each groups’ means of growth rate of sales and profit from 1996-2016. In addition, this paper compares long-term profit in two firms which are similar in types of industries and scales of assets but differ in aggressiveness for cross-border M&As. Results from these comparisons show that aggressive firms increase their sales, profit and EBITDA more than reluctant firms in long-term, although these differences don’t appear in short term.
