Wealth effect of UK acquirers from cross-border and national M&As announcement in 1996-2015

Chen, Li-Ming (2016) Wealth effect of UK acquirers from cross-border and national M&As announcement in 1996-2015. [Dissertation (University of Nottingham only)]

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Abstract

As the most important means of foreign direct investment, mergers and acquisitions involve considerable funding in international deals. Cross-border transactions have experienced a remarkable growth in the last decades. This study aims to examine the shareholder wealth effect from different factors distinguish national and cross-border acquisitions. The sample is 357 successful transactions across all industries (except finance) during 1996 -2015, where all the acquirers are UK public companies.

Based on the methodology of event study and cross-sectional regression, it is found that both cross-border and national acquisitions create significantly positive return for acquirers, but there is no significant difference between the two kinds of transaction. When other factors are considered, however, the returns show something different. Acquisitions with cash offers create higher biding return in cross-border deals than domestic deals, while other payments result in negative acquirer returns. In addition, private target acquisitions create higher bidding returns than public target acquisitions without considering national differences.

Item Type: Dissertation (University of Nottingham only)
Keywords: Mergers and Acquisition, Cross-border,wealth effect
Depositing User: CHEN, Liming
Date Deposited: 11 Jun 2021 15:24
Last Modified: 11 Jun 2021 15:30
URI: http://eprints.nottingham.ac.uk/id/eprint/36337

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