Do Foreign Investors Exhibit a Corporate Governance Disadvantage? An Information Asymmetry Perspective

This paper examines whether the governance role of foreign block acquirers in U.S. targets is different from that of domestic block acquirers. We find that foreign block acquirers are less likely to engage in post-acquisition governance activities in U.S. targets than domestic control block acquirers. Among foreign block acquirers, those who have fewer information disadvantages are more likely to engage in post-acquisition governance activities...