Do cross border and domestic acquisitions differ? Evidence from the acquisition of UK targets

Alan Gregory, Sheila O'Donohoe

Research output: Contribution to journalArticlepeer-review

17 Citations (Scopus)

Abstract

We investigate the determinants of short term wealth effects for both public acquiring and target shareholders following the announcement of UK acquisitions over the period 1990-2005. Regardless of their nationality, overall acquirers incur losses, with domestic acquirers' under-performing cross-border acquirers in general. For the latter no differences in returns between regions are found once the differences in corporate governance regimes are controlled for. Instead it is firm characteristics and in particular firm leverage that largely explain acquirers' returns. All targets gain significantly but the higher returns associated with international deals disappear once bid characteristics are controlled for.

Original languageEnglish
Pages (from-to)61-69
Number of pages9
JournalInternational Review of Financial Analysis
Volume31
DOIs
Publication statusPublished - Jan 2014

Keywords

  • Corporate governance regime
  • Cross border acquirers
  • Domestic acquirers
  • Gearing
  • UK targets

Fingerprint

Dive into the research topics of 'Do cross border and domestic acquisitions differ? Evidence from the acquisition of UK targets'. Together they form a unique fingerprint.

Cite this