Applied Mergers and Acquisitions. Robert F. Bruner

Focus is U.S. targets of Japanese buyers. Servaes, Zenner (1994) 0.3802* 1979–1980 0.1520* 1981–1986 0.4161* 1987–1988 779 1979–1988 N/A Focus is U.S. targets. Dewenter (1995) Domestic acquisition premium is not significantly different from foreign acquisition premium. 294 1978–1989 N/A Focus is U.S. targets. Looked at premiums unique to two industries, chemicals and retailing. Argued that observed differences in other studies were due to industry composition of samples. Eun, Kolodny, Scheraga (1996) 0.3702* all observations 0.3715* Canadian buyers 0.4855* Japanese buyers 0.3555* U.K. buyers’ 0.3530* all other buyers 213 1979–1990 –5,0 Focus is U.S. targets. Kiymaz, Mukherjee (2000) Strong effects of currency and relative GNP growth rates of two countries. 141 1982–1991 –1,0 Focus is U.S. targets. Kuipers, Miller, Patel (2003) +23.07%† $121.86 MM† 181 1982–1991 –1,0 Focus is U.S. targets.

*Significant at the 95 percent confidence level.

†Significant at the 99 percent confidence level.

EXHIBIT 5.8 Returns to Buyers of Foreign Targets

Study	Cumulative Abnormal Returns (% or avg$/acq)	Sample Size	Sample Period	Event Window (Days)	Notes
Conn, Connell (1990)	–0.0787* a non-U.S.(DMM) –0.0677* a non-U.S.(IMM) –0.025 U.S. (DMM) –0.026 U.S. (IMM)	73	1971–1980	–1,0	“Non-U.S.” and “U.S.” indicate country of buyer firm. “IMM” indicates returns estimated using a market model with an international market index. “DMM” uses a domestic market index.
Kang (1993)	0.0059 Japanese buyers	119	1975–1988	–1,0	Focus is non-U.S. buyers of U.S. targets.
	–0.029. U.S. buyers Difference is significant at 5%.	102
Mathur et al. (1994)	–0.0026	77	1984–1988	–1,+1	Focus is non-U.S. buyers of U.S. targets.
Servaes, Zenner (1994)	0.0044 takeovers 0.0005 units and minority interests	70	1979–1988	–1,0	Focus is non-U.S. buyers of U.S. targets.
Eun, Kolodny, Scheraga (1996)	–0.0120 all observations 0.0318 Canadian buyers 0.0362 Japanese buyers –0.0428 U.K. buyers –0.0046 all other buyers	117	1979–1990	–5,0	Focus is non-U.S. buyers of U.S. targets.
Cakici et al. (1996)	0.0046* foreign bidder 0.0000 U.S. bidder	195	1983–1992	–1,0	Focus is non-U.S. buyers of U.S. targets.
Doukas, Travlos (1988)	0.009 All observations –0.0003 operating in target’s country 0.011 not operating in target’s country 0.0199* going abroad first time	301	1975–1983	–1,0	Focus is U.S. buyers of foreign targets.
Pettway, Sicherman, Speiss, (1993)	0.0152†	16	1981–1991	–1,0	Focus is Japanese buyers of U.S. targets.
Markides, Ittner (1994)	0.0032 all observations 0.0055 related acquisitions –0.0087 unrelated	274	1975–1988	–1,0	Focus is U.S. buyers of foreign targets.
Yook, McCabe (1996)	0.0046 all observations 0.0085 large acquisitions	98	1979–1989	–1,0	Focus is U.S. buyers of foreign targets.