European cross-border acquisitions: Long-run stock returns and firm characteristics

Mathias Jensen-Vinstrup, Damiana Rigamonti and Jesper Wulff

Journal of Multinational Financial Management, 2018, vol. 47-48, 31-45

Abstract: We investigate the long-run stock return performance of European cross-border merger and acquisition (M&A) bidders for the period 2002–2012. Our analysis shows that, though acquirers underperform their matched control firms over the thirty-six months following deal completion, this underperformance is not ascribed to the acquisition event, but rather explained by differences between acquirers and control firms in seven firm characteristics. Results are obtained by applying the augmented buy-and-hold abnormal return (BHAR) method. We enhance the robustness of our results by introducing the propensity score methodology to the analysis in addition to matching based on size and book-to-market equity.

Keywords: Cross-border; Acquisitions; Europe; Long-run return; Event study (search for similar items in EconPapers)
JEL-codes: F3 G32 G34 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1042444X18301361
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:mulfin:v:47-48:y:2018:i::p:31-45

DOI: 10.1016/j.mulfin.2018.09.003

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
Bibliographic data for series maintained by Catherine Liu ().