Do cross-border mergers-acquisitions in mature and emerging markets create similar value?

The objective of this article is to compare the value creation of cross-border M&As in mature and emerging markets. The empirical study is based on a sample of 285 cross-border M&As announced between 2010 and 2012 and completed by companies of the French SBF 120 index in 54 countries. The statistical analysis shows how financial markets react before and after the announcement of M&As. The obtained findings highlight significant differences: the reaction of financial markets before the announcement is moderately positive for M&As in mature economies, but negative for those in emerging economies; their reaction after the announcement is clearly positive for M&As in mature markets and moderately positive for those in emerging markets. Future studies on M&A value creation should differentiate mature and emerging economies and adopt a more in-depth classification of target countries. This research emphasizes the necessity to consider country-specific factors for M&A value creation. The empirical study is based on a sample of French acquirers, who account for 3 per cent of the volume and value of M&As in the world and whose operations are rarely studied in the literature. We compare the reaction of financial markets before and after the announcement of M&As conducted in mature and emerging economies.