Cross-Border M&A Value Creation in Emerging Markets – Evidence from Central and Eastern Europe
(2016) BUSN89 20161Department of Business Administration
- Abstract
- The main purpose of this study is to research whether cross-border M&A activity targeting CEE region have a positive impact on Western Europe companies. Domestic acquisitions within CEE are also being investigated with the aim to capture and compare the differences. This was assessed through the event study and excess value method on a sample of 77 deals during 2004 to 2014. The results reveal that cross-border transactions into Eastern European emerging-markets lead to a positive and significant shareholder wealth effect to the acquiring firms from developed-markets during the three days around the announcement date. However, with Excess value approach the findings found no evidence to suggest that CEE companies create value for Western... (More)
- The main purpose of this study is to research whether cross-border M&A activity targeting CEE region have a positive impact on Western Europe companies. Domestic acquisitions within CEE are also being investigated with the aim to capture and compare the differences. This was assessed through the event study and excess value method on a sample of 77 deals during 2004 to 2014. The results reveal that cross-border transactions into Eastern European emerging-markets lead to a positive and significant shareholder wealth effect to the acquiring firms from developed-markets during the three days around the announcement date. However, with Excess value approach the findings found no evidence to suggest that CEE companies create value for Western acquirers, as the results were insignificant. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8888446
- author
- Belocosov, Rodica LU ; Campus, Lorenzo LU and Davydova, Evgeniia LU
- supervisor
- organization
- course
- BUSN89 20161
- year
- 2016
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Mergers and Acquisitions, Central and Eastern Europe, value creation, Excess value, CAR, Event studies
- language
- English
- id
- 8888446
- date added to LUP
- 2016-08-22 12:45:05
- date last changed
- 2016-08-22 12:45:05
@misc{8888446, abstract = {{The main purpose of this study is to research whether cross-border M&A activity targeting CEE region have a positive impact on Western Europe companies. Domestic acquisitions within CEE are also being investigated with the aim to capture and compare the differences. This was assessed through the event study and excess value method on a sample of 77 deals during 2004 to 2014. The results reveal that cross-border transactions into Eastern European emerging-markets lead to a positive and significant shareholder wealth effect to the acquiring firms from developed-markets during the three days around the announcement date. However, with Excess value approach the findings found no evidence to suggest that CEE companies create value for Western acquirers, as the results were insignificant.}}, author = {{Belocosov, Rodica and Campus, Lorenzo and Davydova, Evgeniia}}, language = {{eng}}, note = {{Student Paper}}, title = {{Cross-Border M&A Value Creation in Emerging Markets – Evidence from Central and Eastern Europe}}, year = {{2016}}, }