International acquisitions and shareholder wealth Evidence from the Netherlands

Abstract

In this article, we test wealth effects of international acquisitions using a sample of foreign acquisitions by Dutch firms during the period 1990-96. We find weak evidence that cross-border acquisitions are wealth-creating corporate activities, especially for acquisitions in the U.S. We observe further that for the West European acquisitions, benefits from internalization are larger for companies having relatively less international exposure and making acquisitions outside of their main activities.

Foreign acquisitions by UK limited companies: short- and long-run performance

“…In terms of non-US countries, Kang (1993) investigates the abnormal returns of Japanese bidders in the US and finds positive abnormal returns to Japanese firms. Corhay and Rad (2000) find weak evidence that cross-border acquisitions are wealth-creating based on a sample of Dutch firms. They also find evidence that the benefits from internalisation are greater for firms having less international exposure and making acquisitions outside their main industrial activity.…”

Do cross border and domestic acquisitions differ? Evidence from the acquisition of UK targets

“…The nature of the market for corporate control in the target country can impact on acquirer's wealth (Fatemi & Furtado, 1988;Markides & Ittner, 1994;Corhay & Rad 2000). Bris & Cabolis (2008) call for further work into analysing domestic and cross border mergers, and so we add to the work of Danbolt (1995), (2004) and Danbolt & Maciver (2012), who examine returns to foreign acquirers into the UK, in several ways.…”

Cross-Border Mergers and Acquisition (CBMAs): A Review on Top Six ASEAN Country CBMA Players

“…However, their finding were inconclusive. A few studies found no significant relationship between the size and abnormal return (Bhagat et al, 2011;Cakici et al, 1996;Corhay & Rad, 2000). However, others found a positive relationship between size and cumulative abnormal return of shareholders (Basuil, 2011;Du & Boateng, 2015;Song et al, 2010a).…”

“…Many studies found that announcement of CBMAs created wealth for bidders (Bhagat, Malhotra, & Zhu, 2011;Cakici, Hessel, & Tandon, 1996;Chari et al, 2010;Corhay & Rad, 2000;Goergen & Renneboog, 2004;Lowinski, Schiereck, & Thomas, 2004;Martynova & Renneboog, 2008;Masulis, Wang, & Xie, 2012;Mueller & Yurtoglu, 2007;Rani, Yadav, & Jain, 2014;Yang, 2015;Zhu & Jog, 2012). Though, there were a few studies claimed that bidding shareholder loss following CBMA announcement (Aybar & Ficici, 2009;Bris & Cabolis, 2008;Cakici et al, 1996;Corhay & Rad, 2000;Ferreira et al, 2010;Jory & Ngo, 2011;Mangold & Lippok, 2008).…”