Characteristics of Acquirers and Targets in Domestic and Cross‐border Mergers and Aquisitions. Issue 3 (17th July 2013)

• Record Type: Journal Article
• Authors: Liu, Qing; Qiu, Larry D.
• Is Part Of: Review of development economics. Volume 17:Issue 3(2013:Aug.)
• Page Start: 474
• Page End: 493
• Publication Date: 2013-07-17
• Subjects: Economic development -- Periodicals; 330
• DOI: 10.1111/rode.12044
• Languages: English
• ISSNs: 1363-6669

Abstract

<abstract abstract-type="main"> <title>Abstract</title> <p>To help understand mergers and acquisitions (M&amp;As), this paper utilizes the most recent M&amp;A data (1991–2007) to establish empirical facts on a variety of performance measures for M&amp;A acquirers, targets, and non‐participants. Unlike the finance literature which mainly focuses on abnormal returns, our performance measures include firm size, technology, productivity, and profitability. Generally, in domestic M&amp;As, in cross‐border M&amp;As, in the pre‐merger period and in the post‐merger period, acquirers perform better than targets, whereas targets perform better than non‐participants. Firms' performance is improved after the M&amp;As. We also find that in the pre‐merger period, US firms that acquire foreign firms in developing countries are significantly better than those that acquire foreign firms in developed countries.</p> </abstract>