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"We study 98 large M&As of European bidding banks from 1985 to 2000 in order to investigate drivers of excess returns to the shareholders of the targets, the bidders, and to the combined entity of the bidder and the target. Our findings show that many of 13 drivers identified mostly from prior, US-focused research have significant explanatory power, indicating that the stock market reaction to M&A announcements of European bidding banks can be at least partly forecast. Our results are largely consistent with the US-experience and confirm the preference of stock markets for focused transactions and against diversification. Moreover, we find that less active bidders create more value than more active/experienced bidders. This stands in contrast to some US research and may indicate that managers of frequent European bidding banks may be motivated by other objectives than creating shareholder value." Copyright Blackwell Publishers Ltd, 2004.

This article examines the long‐run stock market performance of German and Spanish initial public offerings (IPOs) between 1990 and 2000. We distinguish between family‐ and nonfamily‐owned business IPOs by using the power subscale of the F‐PEC. Buy‐and‐hold‐abnormal returns (BHAR) are calculated in order to determine abnormal returns. Our results show that three years after going public, investors, on average, realized an abnormal return of −32.8% for German and −36.7% for Spanish IPOs. In both countries, nonfamily business IPOs perform insignificantly better. Regression analyses show that for the whole sample there is a positive company size effect. In family‐owned businesses, strong family involvement has a positive impact on the long‐run stock market performance, whereas the age of the firm has a negative influence.

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