Determinants of the value of acquired firms were further examined by analyzing the effect of corporate governance and other characteristics of Japanese and US acquirers on the long-term performance of their US targets during period when both US and Japanese economies experienced superior and poor performances. Bidder-target relationship in general and the role of unique Japanese characteristics (keiretsu, cross-holding, ties to a main bank, negligible shareholding, latitude and long-term focus of managers) were studied. The debate whether unique characteristics of the Japanese governance...