 Persistent performance and interaction effects in sequential cross-border mergers and acquisitionsPengCheng Zhu Journal of Multinational Financial Management, 2011, vol. 21, issue 1, 18-39 Abstract: This study examines the short-term wealth impact of cross-border mergers and acquisitions (M&As) by acquiring companies in 70 countries between the years of 1978 and 2008. We find persistent stock performance in sequential cross-border M&As; that is, the acquiring firms that gained positive (negative) abnormal returns in previous cross-border acquisitions are more likely to experience positive (negative) abnormal returns in subsequent cross-border acquisitions. The persistency of the stock performance is stronger in situations when the elapsed time between the sequential acquisitions is shorter. We find that the persistent stock performance is affected by investor sentiment as well as the choice of cash payments in the sequential cross-border M&As. We do not find that the acquiring firm's operating performance affects the persistency of the stock performance. Keywords: Cross-border; mergers; and; acquisitions; Sequential; acquisitions; Persistent; performance; Short-term; wealth; effect; Investor; sentiment (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:mulfin:v:21:y:2011:i:1:p:18-39 Access Statistics for this article Journal of Multinational Financial Management is currently edited by I. Mathur and G. G. Booth More articles in Journal of Multinational Financial Management from Elsevier |
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