Applied Mergers and Acquisitions. Robert F. Bruner. Читать онлайн. Newlib. NEWLIB.NET

Автор: Robert F. Bruner
Издательство: John Wiley & Sons Limited
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Жанр произведения: О бизнесе популярно
Год издания: 0
isbn: 9781118436349
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abnormal returns to shareholders at the announcement of cross-border acquisitions.

       Returns to targets of foreign buyers. Exhibit 5.7 shows that returns to target shareholders are significantly positive. Two studies report that U.S. targets receive materially higher returns than do foreign targets. In five studies, returns of U.S. targets are higher with foreign buyers than domestic buyers. One study, by Dewenter (1995) yields the provocative suggestion that the difference in results between U.S. and foreign buyers could be due to differences in industrial profiles of the two groups of acquisitions—much more research is required here. Cross-sectional analyses suggest that returns to targets vary significantly by country, industry, and currency rates.

       Returns to buyers of foreign targets. Exhibit 5.8 shows that returns to buyer shareholders are essentially zero. In four studies, U.S. buyers of foreign targets earn returns insignificantly different from zero. In 12 studies of returns to foreign buyers, one reports significantly negative returns, two report significantly positive returns, and the rest report returns insignificantly different from zero.

       Joint wealth changes to buyers and targets. Exhibit 5.9 summarizes three studies that report positive joint wealth gains (two of them are significant) to shareholders of buyers and targets.

      The total picture appears to be that cross-border M&A does pay. Consistent with the findings for U.S. domestic M&A reported in Chapter 3, targets earn large returns; buyers essentially break even; and on a combined basis, shareholders gain. We are left with the general impression that foreign bidders pay more than domestic bidders. Kohers and Kohers (2001) have argued that this premium represents payment for special local knowledge and market access that the target provides the foreign buyer.

Study Cumulative Abnormal Returns (% or avg$/acq) Sample Size Sample Period Event Window (Days) Notes
Conn, Connell (1990) 73 1971–1980 –1,0 “Non-U.S.” and “U.S.” indicate country of target firm. “IMM” indicates returns estimated using a market model with an international market index. “DMM” uses a domestic market index.
Biswas et al. (1997) 0.0623* all observations 81 1977–1987 –1,0 Focus is non-U.S. targets and financial sector deals.
0.0350* non-U.S. 33
0.0752* U.S. only 48
0.1069* U.S. domestic N/A
Wansley et al. (1983) 0.3864* target of foreign buyer 39 1970–1978 –40,0 Focus is U.S. targets.
0.2800* target of U.S. buyer Difference is significant at 5% level. 164
Shaked et al. (1991) 0.168* foreign buyer 29 1980–1983 –1,0 Focus is U.S. targets.
0.148* domestic buyer Difference is significant in oils, mining, and machinery. 82
Harris, Ravenscraft (1991) 0.397* foreign buyers 1,273 1970–1987 –5,0 Focus is U.S. targets.
0.263* U.S. buyers
Marr et al. (1993) 0.1182* foreign buyers 0.0627* U.S. buyers Difference is significant at 5% level. 96 1975–1987 –1,0 Focus is U.S. targets.
Kang (1993) 0.0907* Japanese buyers 0.0684 U.S. buyers Difference is not significant. 102 1975–1988 –1,0 Focus is U.S. targets.
Pettway, Sicherman, Speiss, (1993) 0.3700

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