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Performance of Cross-Border Acquisitions: Evidence from Canadian Firms Acquired by Emerging Market Firms

Gamal Atallah () and Yang Zhou ()
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Yang Zhou: University of Ottawa, Ottawa, ON

No 1710E, Working Papers from University of Ottawa, Department of Economics

Abstract: This paper studies the impact of M&A of Canadian firms by emerging market firms on the stock performance of the acquired firms. Using the short-term window event study, we analyze security prices of Canadian listed firms acquired by emerging market firms from 2000 to 2016. After calculating the abnormal return and cumulative abnormal return of target firms we find that the abnormal return on the event day is about +10.3% and the cumulative abnormal return for 11 days is about +10.55%. The findings indicate that in the short-term, the performance of Canadian firms which are acquired by emerging market firms is positive. Technology and mineral firms have significantly positive abnormal return on day 0 whereas energy firms only have small abnormal return for the same time period.

Keywords: Cross-border acquisitions; M&A; Emerging countries; Corporate performance; Event studies (search for similar items in EconPapers)
JEL-codes: G14 G34 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2017
New Economics Papers: this item is included in nep-cse
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