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Do cross border and domestic acquisitions differ? Evidence from the acquisition of UK targets

Listed author(s):
  • Gregory, Alan
  • O'Donohoe, Sheila
Registered author(s):

    We investigate the determinants of short term wealth effects for both public acquiring and target shareholders following the announcement of UK acquisitions over the period 1990–2005. Regardless of their nationality, overall acquirers incur losses, with domestic acquirers’ under-performing cross-border acquirers in general. For the latter no differences in returns between regions are found once the differences in corporate governance regimes are controlled for. Instead it is firm characteristics and in particular firm leverage that largely explain acquirers' returns. All targets gain significantly but the higher returns associated with international deals disappear once bid characteristics are controlled for.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1057521913001300
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    Article provided by Elsevier in its journal International Review of Financial Analysis.

    Volume (Year): 31 (2014)
    Issue (Month): C ()
    Pages: 61-69

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    Handle: RePEc:eee:finana:v:31:y:2014:i:c:p:61-69
    DOI: 10.1016/j.irfa.2013.09.001
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620166

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