Cross-border versus domestic acquisitions and the impact on shareholder wealth

Danbolt, J. and Maciver, G. (2013) Cross-border versus domestic acquisitions and the impact on shareholder wealth. Journal of Business Finance and Accounting, 39(7-8), pp. 1028-1067. (doi: 10.1111/j.1468-5957.2012.02294.x)

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We analyse the impact on targets and bidders from cross-border acquisitions into and out of the UK, in comparison to companies involved in similar domestic acquisitions. We find both targets and bidders to gain more in cross-border than in comparable domestic acquisitions, with target and bidder cross-border effects of 10.1 and 1.5 percentage points, respectively. The cross-border effect is significantly higher for targets acquired by companies from countries with superior governance systems to their own. There is weak evidence to suggest bidders gain from entering new markets but for targets to gain more where the bidder already operates in the target country.

Item Type:Articles
Glasgow Author(s) Enlighten ID:Maciver, Dr Gillian and Danbolt, Prof Jo
Authors: Danbolt, J., and Maciver, G.
College/School:College of Social Sciences > Adam Smith Business School > Accounting and Finance
Journal Name:Journal of Business Finance and Accounting
Publisher:Blackwell Publishing
ISSN (Online):1468-5957
Published Online:05 July 2012

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