Do cross-border acquisitions create value for the shareholders of acquiring companies? A study on Japanese cross-border acquisitions conducted between years 2010-2015
School of Business | Master's thesis
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AbstractObjectives of the study In this thesis, I study whether cross-border acquisitions conducted by Japanies companies during 2010-2015 produce any cumulative abnormal returns measured within short-term event window around cross-border acquisition announcement date. In this study, cumulative average abnormal returns were calculated within three different event windows of (-3, +3), (-3, +1) and (-1, +1) around the cross-border acquisition announcement date. In addition, I study whether target company geographical region and the year of announcement has any effect on the resulting short-term average cumulative abnormal returns. Data and methodology The final data sample of my study consist of 334 cross-border acquisition announcements in Japan during selected observation period of 2010-2015. In this thesis, event study methodolo-gy and cross-sectional regression analysis were utilized in order to calculate the average cu-mulative abnormal returns around the cross-border acquisition announcement date and to find out if some specific determinants has any influence on the resulting average cumulative abnormal returns. Results The results of this thesis indicate that Japanese acquiring companies experience negative cumulative average abnormal return measured within different short-term event windows around the cross-border acquisition announcement date. Average cumulative abnormal re-turns over different event windows of (-3, +3), (-3, +1) and (-1, +1) were -0,24%, -0,44% and -0,49% respectively. The results of my thesis were contradictory to previous similar studies conducted in Japanese markets. Surprisingly, cross-border acquisitions targeted in Europe produced larger average cumulative abnormal returns than cross-border acquisitions target-ed into Asian markets.
Thesis advisorNyberg, Peter
yrityskaupat, rajat ylittävät yrityskaupat, ostajayrityksen arvonluonti, maantieteellisen sijainnin merkitys