The Effect of Cross-border M&A on Shareholder Wealth : a European event study

Opsahl, Jakob; Skarsbø, Stian Dokken
Master thesis
Thumbnail
View/Open
URI
https://hdl.handle.net/11250/3051800
Date
2022
Metadata
Show full item record
Collections
Abstract
This thesis aims to examine the effect of cross-border M&A transactions in the EU /EFTA.

First, we find no cumulative abnormal return (CAR) differences between domestic and

foreign acquirers. However, we discover a significant difference in CAR of 2,10% between

cross-border and local targets. The premium is mainly driven by three factors: Western

European targets, especially the UK and Belgium, perform considerably better than their

local peers. Next, the two industries, Materials, and Telecom, perform remarkably well.

Lastly, the relative size of the deal seems to give a stronger signal effect for cross-border

targets compared to their local counterparts, which results in a higher CAR.