Abstract

http://ssrn.com/abstract=2010453
 


 



Cross-Border Mergers and Acquisitions: The Role of Private Equity Firms


Mark Humphery-Jenner


UNSW Business School; Financial Research Network (FIRN)

Zacharias Sautner


Frankfurt School of Finance & Management gemeinnützige GmbH

Jo-Ann Suchard


UNSW Australia Business School, School of Banking and Finance; Financial Research Network (FIRN)

October 17, 2015

25th Australasian Finance and Banking Conference 2012
2013 Financial Markets & Corporate Governance Conference
UNSW Australian School of Business Research Paper No. 2012 BFIN 10

Abstract:     
We show that it is a signal of deal quality in cross-border M&A if acquirers have private equity firms as owners (“PE backing”). As such, announcements of cross-border M&A deals by PE-backed acquirers are associated with positive stock price reactions, but only if targets are in poor information environments. We show that PE backing is a positive market signal because of PE firms’ cross-border deal experience and networks. We close by documenting that the market correctly anticipates that operating performance of PE-backed acquirers increases as a result of cross-border M&A.

Number of Pages in PDF File: 31

Keywords: Mergers and acquisitions, private equity, information asymmetries

JEL Classification: G34, G32, G24


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Date posted: February 25, 2012 ; Last revised: October 18, 2015

Suggested Citation

Humphery-Jenner, Mark and Sautner, Zacharias and Suchard, Jo-Ann, Cross-Border Mergers and Acquisitions: The Role of Private Equity Firms (October 17, 2015). 25th Australasian Finance and Banking Conference 2012; UNSW Australian School of Business Research Paper No. 2012 BFIN 10. Available at SSRN: http://ssrn.com/abstract=2010453 or http://dx.doi.org/10.2139/ssrn.2010453

Contact Information

Mark Humphery-Jenner
UNSW Business School ( email )
Sydney, NSW 2052
Australia
Financial Research Network (FIRN)
C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia
HOME PAGE: http://www.firn.org.au

Zacharias Sautner (Contact Author)
Frankfurt School of Finance & Management gemeinnützige GmbH ( email )
Sonnemannstraße 9-11
Frankfurt am Main, 60314
Germany
Jo-Ann Suchard
UNSW Australia Business School, School of Banking and Finance ( email )
Sydney, NSW 2052
Australia
61 2 9385 5876 (Phone)
61 2 9385 6347 (Fax)
Financial Research Network (FIRN)
C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia
HOME PAGE: http://www.firn.org.au

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