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Cross-Border M&A Value Creation in Emerging Markets – Evidence from Central and Eastern Europe

Belocosov, Rodica LU ; Campus, Lorenzo LU and Davydova, Evgeniia LU (2016) BUSN89 20161
Department 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)
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author
Belocosov, Rodica LU ; Campus, Lorenzo LU and Davydova, Evgeniia LU
supervisor
organization
course
BUSN89 20161
year
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},
  keyword      = {Mergers and Acquisitions,Central and Eastern Europe,value creation,Excess value,CAR,Event studies},
  language     = {eng},
  note         = {Student Paper},
  title        = {Cross-Border M&A Value Creation in Emerging Markets – Evidence from Central and Eastern Europe},
  year         = {2016},
}