Wealth effect of UK acquirers from cross-border and national M&As announcement in 1996-2015
As the most important means of foreign direct investment, mergers and acquisitions involve considerable funding in international deals. Cross-border transactions have experienced a remarkable growth in the last decades. This study aims to examine the shareholder wealth effect from different factors...
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English English |
| Published: |
2016
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| Online Access: | https://eprints.nottingham.ac.uk/36337/ |
| _version_ | 1848795267678076928 |
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| author | Chen, Li-Ming |
| author_facet | Chen, Li-Ming |
| author_sort | Chen, Li-Ming |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | As the most important means of foreign direct investment, mergers and acquisitions involve considerable funding in international deals. Cross-border transactions have experienced a remarkable growth in the last decades. This study aims to examine the shareholder wealth effect from different factors distinguish national and cross-border acquisitions. The sample is 357 successful transactions across all industries (except finance) during 1996 -2015, where all the acquirers are UK public companies.
Based on the methodology of event study and cross-sectional regression, it is found that both cross-border and national acquisitions create significantly positive return for acquirers, but there is no significant difference between the two kinds of transaction. When other factors are considered, however, the returns show something different. Acquisitions with cash offers create higher biding return in cross-border deals than domestic deals, while other payments result in negative acquirer returns. In addition, private target acquisitions create higher bidding returns than public target acquisitions without considering national differences. |
| first_indexed | 2025-11-14T19:29:23Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-36337 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T19:29:23Z |
| publishDate | 2016 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-363372021-06-11T15:30:48Z https://eprints.nottingham.ac.uk/36337/ Wealth effect of UK acquirers from cross-border and national M&As announcement in 1996-2015 Chen, Li-Ming As the most important means of foreign direct investment, mergers and acquisitions involve considerable funding in international deals. Cross-border transactions have experienced a remarkable growth in the last decades. This study aims to examine the shareholder wealth effect from different factors distinguish national and cross-border acquisitions. The sample is 357 successful transactions across all industries (except finance) during 1996 -2015, where all the acquirers are UK public companies. Based on the methodology of event study and cross-sectional regression, it is found that both cross-border and national acquisitions create significantly positive return for acquirers, but there is no significant difference between the two kinds of transaction. When other factors are considered, however, the returns show something different. Acquisitions with cash offers create higher biding return in cross-border deals than domestic deals, while other payments result in negative acquirer returns. In addition, private target acquisitions create higher bidding returns than public target acquisitions without considering national differences. 2016-09 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/36337/1/Liming%20Chen%20-%20Wealth%20effect%20of%20UK%20acquirers%20from%20cross-border%20and%20national%20M%26As%20announcement%20in%201996-2015.pdf application/pdf en https://eprints.nottingham.ac.uk/36337/2/Liming%20Chen%20-%20Wealth%20effect%20of%20UK%20acquirers%20from%20cross-border%20and%20national%20M%26As%20announcement%20in%201996-2015.pdf Chen, Li-Ming (2016) Wealth effect of UK acquirers from cross-border and national M&As announcement in 1996-2015. [Dissertation (University of Nottingham only)] Mergers and Acquisition Cross-border wealth effect |
| spellingShingle | Mergers and Acquisition Cross-border wealth effect Chen, Li-Ming Wealth effect of UK acquirers from cross-border and national M&As announcement in 1996-2015 |
| title | Wealth effect of UK acquirers from cross-border and national M&As announcement in 1996-2015 |
| title_full | Wealth effect of UK acquirers from cross-border and national M&As announcement in 1996-2015 |
| title_fullStr | Wealth effect of UK acquirers from cross-border and national M&As announcement in 1996-2015 |
| title_full_unstemmed | Wealth effect of UK acquirers from cross-border and national M&As announcement in 1996-2015 |
| title_short | Wealth effect of UK acquirers from cross-border and national M&As announcement in 1996-2015 |
| title_sort | wealth effect of uk acquirers from cross-border and national m&as announcement in 1996-2015 |
| topic | Mergers and Acquisition Cross-border wealth effect |
| url | https://eprints.nottingham.ac.uk/36337/ |