Global diversification and bidder gains: A comparison between cross-border and domestic acquisitions

Journal of Banking and Finance

Volumn 29, Issue 3, 2005, Pages 533-564

  Moeller, Sara B ^a,b   Schlingemann, Frederik P ^a,b  

^a SOUTHERN METHODIST UNIVERSITY   (United States)

^b UNIVERSITY OF PITTSBURGH   (United States)

Author keywords

Bidder gains; Cross border acquisitions; Global diversification

Indexed keywords

EID: 11444266003     PISSN: 03784266     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0378-4266(04)00047-0     Document Type: Article

References (57)

1. Agmon T. Lessard D.R. Investor recognition of corporate international diversification Journal of Finance 32 4 1977 1049-1055
2. Asquith P. Bruner R. Mullins D. The gains to bidding firms from merger Journal of Financial Economics 11 1983 121-139
3. Asquith, P., Bruner, R.F., Mullins Jr., D.W., 1987. Merger returns and the form of financing. Working Paper, Harvard University, Boston, MA
4. Bekaert G. Harvey C. Time-varying world market integration Journal of Finance 50 1995 403-444
5. Berger P.G Ofek E. Diversification's effect on firm value Journal of Financial Economics 37 1 1995 39-65
6. Black F. International capital market equilibrium with investment barriers Journal of Financial Economics 1 4 1974 337-352
7. Bodnar, G.M., Tang, C., Weintrop, J., 1998. Both sides of corporate diversification: The value impacts of geographic and industrial diversification. NBER working paper #6224
8. Bradley M.A. Desai A. Kim E.H. Synergistic gains from corporate acquisitions and their division between stockholders of target and acquiring firms Journal of Financial Economics 21 1988 3-40
9. Brown S.J. Warner J.B. Using daily stock returns, the case of event studies Journal of Financial Economics 14 1985 3-31
10. Caves R.E. Multinational Enterprise and Economic Analysis 1982 Cambridge University Press Cambridge, MA
11. Chang S. Takeovers of privately held targets, methods of payment, and bidder returns Journal of Finance 52 1998 773-784
12. Chatterjee, R., Aw, M., 2000. The performance of UK firms acquiring large cross-border and domestic takeover targets. Judge Institute of Management Studies Research Paper WP07/00, Cambridge, UK
13. Dahlquist M. Pinkowitz L.F. Stulz R.M. Williamson R. Corporate governance and the home bias Journal of Financial and Quantitative Analysis 38-1 2003 87-110
14. Denis D.J. Denis D.K. Yost K. Global diversification, industrial diversification, and firm value Journal of Finance 57 2002 1951-1979
15. Denis D.K. McConnell J.M. International corporate governance Journal of Financial and Quantitative Analysis 38-1 2003 1-36
16. Dewenter K.L. Does the market react differently to domestic and foreign takeover announcements. Evidence from the U.S. chemical and retail industries Journal of Financial Economics 37 1995 421-442
17. Doukas J. Overinvestment, Tobin's q and gains from foreign acquisitions Journal of Banking and Finance 19 1995 1285-1303
18. Doukas J. Travlos N.G. The effect of corporate multi-nationalism on shareholders wealth: Evidence from international acquisitions Journal of Finance 43 1988 1161-1175
19. Eckbo B.E. Thorburn K.S. Gains to bidder firms revisited: Domestic and foreign acquisitions in Canada Journal of Financial and Quantitative Analysis 35 1 2000 1-25
20. Edison H.J. Warnock F.E. A simple measure of the intensity of capital controls Journal of Empirical Finance 10 2003 81-103
21. Errunza V.R. Senbet L.W. The effects of international operations on the market value of the firm: Theory and evidence Journal of Finance 36 2 1981 401-417
22. Fatemi A.M. Shareholder benefits from corporate international diversification Journal of Finance 39 1984 1325-1344
23. Fauver L. Houston J. Naranjo A. Capital market development, international integration, legal systems, and the value of corporate diversification: A cross-country analysis Journal of Financial and Quantitative Analysis 38-1 2003 135-157
24. Froot K.F. Stein J.C. Exchange rates and foreign direct investment: An imperfect capital markets approach Quarterly Journal of Economics 106-4 1991 1191-1217
25. Fuller K. Netter J. Stegemoller M. What do returns of acquiring firms tell us. Evidence from firms that make many acquisitions Journal of Finance 57 2002 1763-1794
26. Gaughan P.A. Mergers, Acquisitions, and Corporate Restructurings third ed. 2002 John Wiley and Sons New York
27. Greene W.H. Econometric Analysis second ed. 1993 Macmillan Publishing Company New York
28. Gwartney J. Lawson R. Block W. Economic Freedom in the World: 1975-1995 1996 The Fraser Institute
29. Hansen R.G. A theory for the choice of exchange medium in mergers and acquisitions Journal of Business 60 1987 75-95
30. Harford J. Corporate cash reserves and acquisitions Journal of Finance 54 1999 1969-1998
31. Harris R.S. Ravenscraft D. The role of acquisitions in foreign direct investment: Evidence from the U.S. stock market Journal of Finance 46 1991 825-844
32. Healy P.M. Palepu K.G. Ruback R.S. Does corporate performance improve after mergers? Journal of Financial Economics 31 1992 135-175
33. Jensen J.C. Agency costs of free cash flow, corporate finance, and takeovers American Economic Review 76 1986 323-329
34. Jensen M.C. Ruback R.S. The market for corporate control Journal of Financial Economics 11 1983 5-50
35. Kelly J. Cook C. Spitzer D. Unlocking shareholder value: The keys to success - Mergers and acquisition: A global research report 1999 KPMG UK
36. Lang L.H.P. Stulz R.M. Walkling R.A. A test of the free cash flow hypothesis: The case of bidder returns Journal of Financial Economics 24 1991 137-154
37. La Porta R. Lopez-de-Silanes F. Shleifer A. Vishny R.W. Legal determinants of external financing Journal of Finance 52 1997 1131-1150
38. La Porta R. Lopez-de-Silanes F. Shleifer A. Corporate ownership around the world Journal of Finance 54 1999 471-517
39. La Porta R. Lopez-de-Silanes F. Shleifer A. Vishny R.W. Investor protection and corporate governance Journal of Financial Economics 58 2000 3-27
40. Lehn K. Poulsen A.B. Free cash flow and stockholder gains in going private transactions Journal of Finance 44 3 1989 771-788
41. MacKinlay A.C. Event studies in economics and finance Journal of Economic Literature 35 1997 13-39
42. Manzon G.B. Sharp D.J. Travlos N.G. An empirical study of the consequences of U.S. tax rules for international acquisitions by U.S. firms Journal of Finance 49 1994 1893-1904
43. Martin K. The method of payment in corporate acquisitions, investment opportunities, and managerial ownership Journal of Finance 51 1996 1227-1246
44. McCabe G.M. Yook K.C. The effect of international acquisitions on shareholders' wealth Mid-Atlantic Journal of Business 32 1996 5-17
45. Moeller, S.B., Schlingemann, F.P., Stulz, R.M., forthcoming. Firm size and bidder gains. Journal of Financial Economics
46. Morck R. Yeung B. Why investors value multinationality Journal of Business 64 2 1991 165-188
47. Mundell R.A. International Economics 1968 MacMillan New York
48. O'Driscoll G.P.Jr. Holmes K.R. Kirkpatrick M. 2000 index of economic freedom. The Heritage Foundation & The Wall Street Journal 1999 Dow Jones - Co New York
49. Palepu K.G. Predicting takeover targets: A methodological and empirical analysis Journal of Accounting and Economics 8 1986 3-35
50. Roll R. The hubris hypothesis of corporate takeovers Journal of Business 59 1986 197-216
51. Rossi, S., Volpin, P., forthcoming. Cross-country determinants of mergers and acquisitions. Journal of Financial Economics
52. Schwert J.W. Markup pricing in mergers and acquisitions Journal of Financial Economics 41 1996 153-192
53. Servaes H. Tobin's Q and the gains from takeovers Journal of Finance 46 1991 409-419
54. Stulz R.M. On the effects of barriers to international investment Journal of Finance 36 1981 923-934
55. Thompson R. Empirical methods of event studies in corporate finance In: Jarrow R.A. Maksimovic V. Ziemba W.T. (Eds.) Handbooks in Operations Research and Management Science 1995 963-992 Elsevier Amsterdam, The Netherlands
56. Travlos N.G. Corporate takeover bids, methods of payment and bidding firms' stock returns Journal of Finance 42 1987 943-963
57. White H. A heteroscedasticity-consistent covariance matrix estimator and a direct test for heteroscedasticity Econometrica 48 1980 817-838