Resource title

Acquiring foreign firms far away might be hazardous to your share price : evidence from Germany

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Resource description

This paper examines shareholder wealth effects of cross-border acquisitions. In a sample 155 large acquisitions by German corporations from 1985?2006 international transactions total do not lead to significant announcement returns. Geography, however, makes a difference: Shareholders of acquiring firms gain 6.5% in cross-border transactions into countries that have a common border with Germany but lose 4.4% in other international transactions. We find proximity to be one of the most important success factors in cross-border and acquisitions, even when we control for firm, deal and country characteristics.

Resource author

Michael H. Grote, Fabian Rücker

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/23446

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Adapt according to the presented license agreement and reference the original author.