Performance of Cross-Border Acquisitions: Evidence from Canadian Firms Acquired by Emerging Market Firms

Authors

  • Yang Zhou
  • Gamal Atallah

Keywords:

Cross-Border Acquisitions, M&A, Emerging Countries, Corporate Performance, Event Studies

Abstract

This paper studies the impact of M&A of Canadian firms by emerging market firms on the stock performance of the acquired firms from 2000 to 2016, using the shortterm window event study. We find that the abnormal return of target firms on the event day is +10.3 percent and the cumulative abnormal return for 11 days is +10.55 percent. In the short term, the performance of Canadian firms acquired by emerging market firms is positive. Technology and mineral firms have significantly positive abnormal return on day 0 whereas energy firms only have small abnormal return for the same time period.

Published

2017-07-01