The performance of cross-border acquisitions targeting African firms

Prince Nkiwane and Chimwemwe Chipeta

Emerging Markets Review, 2019, vol. 39, issue C, 68-82

Abstract: This paper examines the performance of cross-border acquisitions (CBAs) of fims domiciled in Africa. We examine 503 deals involving firms from 23 developed and 20 emerging countries, acquiring targets in 33 African countries. We find that, on aggregate, Africa bound CBAs significantly underperform, and that emerging economy acquirers outperform their developed economy counterparts. Further, significant variations in deal performance is documented when the target firms are categorised according to the level of development of African financial markets, industries, and to some extent, economic blocs. The results are robust to various firm, industry, deal and country specific characteristics.

Keywords: Cross-border acquisitions; Developed economy acquirers; Emerging economy acquirers (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:39:y:2019:i:c:p:68-82

DOI: 10.1016/j.ememar.2019.03.004

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