Department of Economics and Business Economics

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

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

  • Mathias Jensen-Vinstrup, Danske Bank , Denmark
  • Damiana Rigamonti
  • ,
  • Jesper Wulff

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.

Original languageEnglish
JournalJournal of Multinational Financial Management
Volume47-48
Pages (from-to)31-45
Number of pages15
ISSN1042-444X
DOIs
Publication statusPublished - 2018

Bibliographical note

AM haves fra Elsevier

    Research areas

  • Acquisitions, Cross-border, Europe, Event study, GAINS, INDUSTRY, Long-run return, M-AND-A, MARKET, MERGERS, PAYMENT, PERFORMANCE, PROPENSITY SCORE, SECTION, WEALTH

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