Target company cross-border effects in acquisitions into the UK

Research output: Contribution to journalArticlepeer-review

Abstract / Description of output

We analyse the abnormal returns to target shareholders in cross-border and domestic acquisitions of UK companies. The cross-border effect during the bid month is small (0.84%), although cross-border targets gain significantly more than domestic targets during the months surrounding the bid. We find no evidence for the level of abnormal returns in cross-border acquisitions to be associated with market access or exchange rate effects, and only limited support for an international diversification effect. However, the cross-border effect appears to be associated with significant payment effects, and there is no significant residual cross-border effect once various bid characteristics are controlled for.
Original languageEnglish
Pages (from-to)83–108
Number of pages26
JournalEuropean Financial Management
Issue number1
Publication statusPublished - 20 Feb 2004

Keywords / Materials (for Non-textual outputs)

  • mergers and acquisitions
  • shareholder returns
  • cross-border
  • differential wealth effects


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