Global Merger and Acquisition (M&A) activity: 1992–2011

Işıl Sevilay Yılmaz and Başak Tanyeri

Finance Research Letters, 2016, vol. 17, issue C, 110-117

Abstract: In our global sample of 263,461 deals in 47 countries, 3-day target cumulative abnormal returns (CARs) average 6.9% and bidder CARs average 1.4%. When we impose the common filters used in the literature which restrict the sample to completed acquisitions of public firms, target CARs increase from 6.9% to 13%. Our findings indicate that M&A activity (particularly in deals where control rights are sold) generates value. We also find that the magnitudes of bidder and target CARs in developed countries are higher than those in emerging-market countries.

Keywords: Mergers; Acquisitions; Partial sales; Event study (search for similar items in EconPapers)
JEL-codes: F21 F23 G14 G34 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:17:y:2016:i:c:p:110-117

DOI: 10.1016/j.frl.2016.02.005

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