Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/317277 
Year of Publication: 
2018
Citation: 
[Journal:] Journal of Business Economics and Management (JBEM) [ISSN:] 2029-4433 [Volume:] 19 [Issue:] 1 [Year:] 2018 [Pages:] 96-109
Publisher: 
Vilnius Gediminas Technical University, Vilnius
Abstract: 
This study presents the results from a comprehensive out-of-sample test of long-run returns following mergers and acquisitions (M&As). Using a unique sample from 23 frontier markets of almost 800 transactions conducted during the years 1992 to 2016, we implement both cross-sectional tests and time-series examinations based on a calendar-time portfolio approach. Contrary to evidence from developed markets, the M&As in these frontier markets do not lead to abnormal underperformance of acquirers, regardless of whether they paid for the acquisition with cash or stock. The results are robust to many considerations, including subsample and subperiod analysis, alternative formation periods, different portfolio construction approaches.
Subjects: 
mergers
acquisitions
long-run returns
long-term underperformance
frontier equity markets
behavioral finance
corporate finance
JEL: 
G11
G12
G14
G15
G34
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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