원문정보
초록
영어
We examine cross-border acquisitions of private and public targets by U.S. firms by employing self selection models. We are particularly interested in the roles of country-level liquidity and transparency in cross-border acquisitions. Our results show that a typical acquisition deal of a private target is smaller in size, uses cash less frequently for payment, and involves more hightech firms than that of a public target. Most importantly, we find that acquiring firms are more likely to buy private targets in lower-transparency countries, but the level of country liquidity has little effect on the target selection. Furthermore, after accounting for the endogeneity bias associated with target selection, country liquidity is shown to be no longer a key determinant of acquirer returns in cross-border acquisitions. Our results are robust to alternative specifications of dependent variables and self selection models.
목차
1. Introduction
2. Literature Review and Development of Hypotheses
2.1. Country liquidity hypothesis
2.2. Country transparency (or information asymmetry) hypothesis
3. Data
4. Empirical Design and Results
4.1. Measurement of announcement-period returns to acquiring firms
4.2. Regression model for determinants of announcement-period returns
4.3. Descriptive statistics on characteristics of deals and acquiring firms
4.4. Univariate analysis of announcement-period returns
4.5. Results from cross-sectional OLS regressions
4.6. Self-selection models
4.7. Robustness tests
5. Conclusion
References
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