Cross-Border Mergers and Acquisitions Management's problem is that it does not directly influence the market's opinion of its earnings Although management's responsibility is to increase the P/E ratio,this is a difficult,indirect,and long- term process of communication and promise fulfillment However,management does control EPS and often must look outward to build value - The global marketplace can offer greater growth potential or "bang for the buck"when compared to struggling within a domestic market for market share and profits Copyright 2007 Pearson Addison-Wesley.All rights reserved. 19-5Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 19-5 Cross-Border Mergers and Acquisitions – Management’s problem is that it does not directly influence the market’s opinion of its earnings – Although management’s responsibility is to increase the P/E ratio, this is a difficult, indirect, and long￾term process of communication and promise fulfillment – However, management does control EPS and often must look outward to build value – The global marketplace can offer greater growth potential or “bang for the buck” when compared to struggling within a domestic market for market share and profits