scholarly journals Shareholder Wealth Effects of European Domestic and Cross-Border Takeover Bids

2003 ◽  
Author(s):  
Marc Goergen ◽  
Luc D.R. Renneboog
Keyword(s):  
Shareholder Wealth ◽  
Wealth Effects ◽  
Cross Border ◽  
Takeover Bids

scholarly journals The Effect Of Cross-Border And Domestic Acquisitions On Shareholder Wealth: Evidence From Brics Acquirers

2014 ◽  
Vol 8 (4) ◽  
pp. 34-45 ◽  
Author(s):  
Svetlana Grigorieva ◽  
R. Morkovin
Keyword(s):  
Firm Value ◽  
Developed Countries ◽  
Shareholder Wealth ◽  
Wealth Effects ◽  
Risk Level ◽  
Short Term ◽  
Cross Border ◽  
Long Term Performance ◽  
Term Performance

Svetlana A. Grigorieva National Research University The Higher School of Economics [email protected] The topic devoted to cross-border M&A performance has received wide attention in academic literature.Most existing studies examine wealth effects of international M&As in developed countries. Wecontribute to existing research by examining the market reaction to the announcements of M&As initiatedby companies from BRICS countries over 2000–2012. We assess the long-term performance ofM&A deals along with the short-term one and provide a copmarative analysis of company wealth gainsin cross-border and domestic M&As. Based on the sample of 117 cross-border deals and 247 domesticM&As we find that the stock market reacts favorably and statistically significant to the announcementsof domestic deals in the short run. Returns to foreign acquirer shareholders are also positive and statisticallysignificant. Comparing the effects of M&As on firm value in the short term for foreign anddomestic acquisitions we reveal that the latter outperform the cross-border M&As. Our analysis basedon the buy-and-hold abnormal return method shows the opposite result. We also find that the crossborderM&A deals increase the downside risk level of acquirers in the long term. According to ouranalysis, the key determinants of short- and long-term performance of M&A deals are the acquirer’sFCFF, percentage change in the acquiring country’s exchange rate against the target country currencyduring the acquisition year, and the level of international diversification of acquirers.

Bid Resistance by Takeover Targets: Managerial Bargaining or Bad Faith?

2017 ◽  
Vol 52 (3) ◽  
pp. 837-866 ◽  
Author(s):  
Thomas W. Bates ◽  
David A. Becher
Keyword(s):  
Chief Executive Officers ◽  
Chief Executive ◽  
Significant Negative Correlation ◽  
Shareholder Wealth ◽  
Wealth Effects ◽  
Classified Boards ◽  
Forced Turnover ◽  
Executive Officers ◽  
Takeover Bids

This paper examines management’s motives for rejecting takeover bids and the associated shareholder wealth effects. We develop measures of initial bid quality and find a significant negative correlation between the quality of a bid and rejection. The likelihood of higher follow-on offers decreases with bid quality and is greater when targets have classified boards and chief executive officers (CEOs) with significant personal wealth tied to the transaction. Target CEOs who fail to close high-quality offers experience a significant rate of forced turnover. Overall, the results support a price improvement motive for contested bids.

scholarly journals Do corporate governance and culture matter in cross-border acquisitions? Some Chinese evidence

2018 ◽  
Vol 15 (1) ◽  
pp. 90-105
Author(s):  
Won Young Chae ◽  
Jinho Byun ◽  
Paul Moon Sub Choi ◽  
Ruilin Yang
Keyword(s):  
Cultural Distance ◽  
Abnormal Returns ◽  
Shareholder Wealth ◽  
Cultural Dimensions ◽  
Wealth Effects ◽  
Chinese Market ◽  
Firm Level ◽  
Cross Border ◽  
Cumulative Abnormal Returns ◽  
Market For Corporate Control

The Chinese market for corporate control has recently gained much academic attention. This research constructs a sample of 159 cross-border acquisitions made by 123 Chinese firms between 2010 and 2014 and relates the roles of governance and culture to the wealth effects of mergers. First, the shareholders of Chinese bidders experience gains upon the announcement of overseas mergers. Second, country- and firm-level governance notably affects the cumulative abnormal returns of Chinese acquirers. Lastly, and however, the cultural distance per Hofstede’s (1980) four cultural dimensions does not appear to be a significant factor in determining the shareholder wealth of Chinese purchasers.

Successful Cross-border Acquisitions of Latin American Financial Institutions: Identifying Success Factors

2012 ◽  
Vol 4 (3) ◽  
pp. 347-367 ◽  
Author(s):  
C. Bülent Aybar ◽  
Wendy M. Jeffus ◽  
John C. Edmunds
Keyword(s):  
Latin American ◽  
Financial Institutions ◽  
Success Factors ◽  
Market Access ◽  
Shareholder Wealth ◽  
Wealth Effects ◽  
Cross Sectional ◽  
Foreign Companies ◽  
Study Methodology ◽  
Insight Into

This article examines the shareholder wealth effects for foreign companies that announce acquisitions of financial institutions in Latin America. We examine data for 636 transactions for the period 1985–2009. We employ event study methodology coupled with a cross-sectional regression to determine if shareholders of the acquiring firm receive positive returns. The results indicate that acquirers receive positive returns when the acquisition involves a target bank in a market with low market access, high market risk, and greater control post acquisition. These findings offer improvements on previously examined variables and provide insight into a market not sufficiently examined in prior research.

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