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21 years of international M&As and joint ventures by Italian medium-sized listed firms: Value creation or value destruction?

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  • Morresi, Ottorino
  • Pezzi, Alberto

Abstract

This study provides evidence of the value creation of different equity entry modes in a sample of international investments performed by all Italian medium-sized listed firms in the period 1986-2006. Our research shows a positive and significant market reaction to announcements of internationalization strategies. The results are largely affected by high-equity entry modes carried out in advanced economies. Low-equity entry modes and international operations performed in emerging countries show no significant market reaction. We also find that the relative size of the deal, the firm age, the country risk, and the evolution of information disclosure regulation, matter in explaining the outcomes.

Suggested Citation

  • Morresi, Ottorino & Pezzi, Alberto, 2011. "21 years of international M&As and joint ventures by Italian medium-sized listed firms: Value creation or value destruction?," Research in International Business and Finance, Elsevier, vol. 25(1), pages 75-87, January.
    • Handle: RePEc:eee:riibaf:v:25:y:2011:i:1:p:75-87
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    Cited by:

    1. Valeria Gattai & Piergiovanna Natale, 2013. "What makes a joint venture: Micro‐evidence from Sino‐Italian contracts," Review of Financial Economics, John Wiley & Sons, vol. 22(4), pages 194-205, November.
    2. Gattai, Valeria & Natale, Piergiovanna, 2013. "What makes a joint venture: Micro-evidence from Sino-Italian contracts," Review of Financial Economics, Elsevier, vol. 22(4), pages 194-205.
    3. Aguir, Iness & Misra, Lalatendu, 2017. "Ownership level choice and value creation in international joint ventures: The role of investor protection," International Review of Economics & Finance, Elsevier, vol. 49(C), pages 515-535.
    4. Reddy, Kotapati Srinivasa, 2015. "Macroeconomic Change, and Cross-border Mergers and Acquisitions: The Indian Experience, 1991-2010," MPRA Paper 63562, University Library of Munich, Germany, revised 2015.
    5. Avdasheva, Svetlana & Tsytsulina, Dina, 2015. "The effects of M&As in highly concentrated domestic vis-à-vis export markets: By the example of Russian metal industries," Research in International Business and Finance, Elsevier, vol. 34(C), pages 368-382.

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