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

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Title: Performance of Cross-Border Acquisitions: Evidence from Canadian Firms Acquired by Emerging Market Firms
Authors: Zhou, Yang
Atallah, Gamal
Date: 2017
Abstract: This paper studies the impact of M&A of Canadian firms by emerging market firms on the stock performance of the acquired firms. Using the short-term window event study, we analyze security prices of Canadian listed firms acquired by emerging market firms from 2000 to 2016. After calculating the abnormal return and cumulative abnormal return of target firms we find that the abnormal return on the event day is about +10.3% and the cumulative abnormal return for 11 days is about +10.55%. The findings indicate that in the short-term, the performance of Canadian firms which are 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.
URL: http://hdl.handle.net/10393/40358
CollectionÉconomie - Publications // Economics - Working Papers
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