The Effect of Cross-border M&A on Shareholder Wealth : a European event study
MetadataShow full item record
- Master Thesis 
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.