Cross-border diversification through M&As in Latin America

Eduardo Pablo

Journal of Business Research, 2013, vol. 66, issue 3, 425-430

Abstract: This study analyzes a database of 952 acquisitions in Latin America during the period from 1998 to 2004. Higher GDP growth correlation between the countries where the target and the bidder base their operations directly relates to higher cumulative abnormal returns for the acquiring firm. This result in the emerging markets of Latin America supports the evidence that Kiymaz and Mukherjee (2000) report in developed economies. This study also finds that the bidder benefits from buying companies located in countries whose governance environment differs significantly from that in the country where the bidder resides, even if the quality of the governance in the target country is worse than in the bidder's country. Although counter-intuitive, this result is consistent with evidence that Haggendorff, Collins, and Keasey (2008) report.

Keywords: International mergers and acquisitions; Diversification; Latin America; Governance (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148296312001178
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:66:y:2013:i:3:p:425-430

DOI: 10.1016/j.jbusres.2012.04.009

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().