Breadcrumb

 
 

Value creation in international acquisitions : evidence from U.S. firms buying into Canada

Title:

Value creation in international acquisitions : evidence from U.S. firms buying into Canada

Beshlian, Taline (1997) Value creation in international acquisitions : evidence from U.S. firms buying into Canada. Masters thesis, Concordia University.

[img]
Preview
PDF
2401Kb

Abstract

This study attempts to investigate two main issues: (1) Whether international acquisitions, in contrast to their domestic counterparts, create value for the shareholders of acquiring firms, and (2) What explains the variation in the abnormal returns generated by international takeover announcements. Using a dummy-variable approach and a sample of 187 transactions between Canada and the U.S., we examine the stock behavior of American companies that have purchased Canadian firms in the period 1982-1995, in order to determine whether the market reacts differently to domestic and foreign takeover announcements, and more specifically, to transactions between these two countries. Characteristics of the bidding firm and its industry, as well as of the acquisition and the economical environment were examined to identify the variables enhancing wealth creation. Consistent with prior research, significant positive abnormal returns to American firms announcing the acquisition of Canadian companies are reported. Moreover, evidence shows that the wealth created by international acquisitions is a function of the bidding firm's prior level of international exposure, the degree of the firms' relatedness, the foreign exchange rate, and the Tax Reform Act of 1986. Furthermore, the method of payment, the ownership status of the target firm, whether the firm was purchased by a Canadian subsidiary, and the bidder's stock exchange seem to also play a role in explaining the abnormal returns generated by diversification to the acquiring firms

Divisions:Concordia University > John Molson School of Business
Item Type:Thesis (Masters)
Authors:Beshlian, Taline
Pagination:viii, 65 leaves ; 29 cm.
Institution:Concordia University
Degree Name:Theses (M.Sc.Admin.)
Program:Faculty of Commerce and Administration
Date:1997
Thesis Supervisor(s):Switzer, Jeannette
ID Code:294
Deposited By:Concordia University Libraries
Deposited On:27 Aug 2009 13:11
Last Modified:08 Dec 2010 10:13
Related URLs:
All items in Spectrum are protected by copyright, with all rights reserved. The use of items is governed by Spectrum's terms of access.

Repository Staff Only: item control page

Document Downloads

More statistics for this item...

Concordia University - Footer