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Gains to Bidder Firms Revisited: Domestic and Foreign Acquisitions in Canada.
- Source :
- Journal of Financial & Quantitative Analysis; Mar2000, Vol. 35 Issue 1, p1-25, 25p, 9 Charts, 1 Graph
- Publication Year :
- 2000
-
Abstract
- We present large sample evidence on the performance of domestic and U.S. (foreign) bidder firms acquiring Canadian targets. Domestic bidders earn significantly positive average announcement period abnormal returns, while U.S. bidder returns are indistinguishable from zero. Measures of pre- and post-acquisition abnormal accounting performance are also consistent with a superior domestic bidder performance. Domestic bidder announcement returns are, on average, greatest for offers involving stock payment and for the bidders with the smallest equity size relative to the target. Neither direct foreign investment controls, horizontal product market relationships, nor acquisition propensities explain why domestic bidders outperform their U.S. competitors. [ABSTRACT FROM AUTHOR]
- Subjects :
- MERGERS & acquisitions
LETTING of contracts
FOREIGN investments
BIDDERS
Subjects
Details
- Language :
- English
- ISSN :
- 00221090
- Volume :
- 35
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Journal of Financial & Quantitative Analysis
- Publication Type :
- Academic Journal
- Accession number :
- 2922761
- Full Text :
- https://doi.org/10.2307/2676236