Global Merger and Acquisition (M&A) activity: 1992-2011

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Yılmaz I. S., Tanyeri B.

FINANCE RESEARCH LETTERS, vol.17, pp.110-117, 2016 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 17
  • Publication Date: 2016
  • Doi Number: 10.1016/j.frl.2016.02.005
  • Journal Name: FINANCE RESEARCH LETTERS
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.110-117
  • Keywords: Mergers, Acquisitions, Partial sales, Event study, EMERGING EQUITY MARKETS, CROSS-BORDER MERGERS, INVESTOR PROTECTION, TAKEOVER PREMIUMS, RETURNS, PERFORMANCE, DETERMINANTS, INFORMATION, GAINS, FIRMS
  • TED University Affiliated: No

Abstract

In our global sample of 263,461 deals in 47 countries, 3-day target cumulative abnormal returns (CARS) average 6.9% and bidder CARS average 1.4%. When we impose the common filters used in the literature which restrict the sample to completed acquisitions of public firms, target CARS increase from 6.9% to 13%. Our findings indicate that M&A activity (particularly in deals where control rights are sold) generates value. We also find that the magnitudes of bidder and target CARS in developed countries are higher than those in emerging-market countries. (C) 2016 Elsevier Inc. All rights reserved.