The effect of cross-border and domestic acquisitions on shareholder wealth: evidence from BRICS acquirers

Svetlana Grigorieva () and Morkovin R.
Additional contact information
Morkovin R.: National Research University Higher School of Economics

Journal of Corporate Finance Research Корпоративные финансы, 2014, issue 4 (32), 34-45

Abstract: The topic devoted to cross-border M&A performance has received wide attention in academic literature. Most existing studies examine wealth effects of international M&As in developed countries. We contribute to existing research by examining the market reaction to the announcements of M&As initiated by companies from BRICS countries over 2000-2012. We assess the long-term performance of M&A deals along with the short-term one and provide a copmarative analysis of company wealth gains in cross-border and domestic M&As. Based on the sample of 117 cross-border deals and 247 domestic M&As we find that foreign acquisitions outperform the domestic ones in the long run. We also find that main determinants of M&A performance are the acquirer’s FCFF, percentage change in the acquiring country's exchange rate against the target country currency during the acquisition year, and the level of interna-tional diversification of acquirers.

Keywords: CROSS-BORDER M&AS; DOMESTIC M&AS (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://cyberleninka.ru/article/n/the-effect-of-cro ... from-brics-acquirers

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:scn:026790:15693907

Access Statistics for this article

More articles in Journal of Corporate Finance Research Корпоративные финансы from CyberLeninka, Федеральное государственное автономное образовательное учреждение высшего образования «Национальный исследовательский университет «Высшая школа экономики»
Bibliographic data for series maintained by CyberLeninka ().