Abstract

http://ssrn.com/abstract=2010453
 


 



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


Mark Humphery-Jenner


UNSW Australia - UNSW Business School; Financial Research Network (FIRN)

Zacharias Sautner


Frankfurt School of Finance & Management gemeinnützige GmbH

Jo-Ann Suchard


University of New South Wales (UNSW) - School of Banking and Finance; Financial Research Network (FIRN)

January 29, 2014

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

Abstract:     
We study the role of private equity (PE) firms in facilitating cross-border M&A. We find that PE-backed firms are more likely to become targets in cross-border transactions. Cross-border deals are associated with higher acquirer announcement returns if the acquirer is PE-backed and the target located in a poor governance environment. We document that the international networks of PE firms can explain why they create value in such deals. We take various steps to mitigate endogeneity and sample selection concerns. Our findings suggest that PE firms can help to reduce information asymmetries in cross-border M&A deals.

Number of Pages in PDF File: 49

Keywords: Mergers and acquisitions, private equity, information asymmetries

JEL Classification: G34, G32, G24

working papers series


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Date posted: February 25, 2012 ; Last revised: January 29, 2014

Suggested Citation

Humphery-Jenner, Mark and Sautner, Zacharias and Suchard, Jo-Ann, Cross-Border Mergers and Acquisitions: The Role of Private Equity Firms (January 29, 2014). UNSW Australian School of Business Research Paper No. 2012 BFIN 10; 25th Australasian Finance and Banking Conference 2012; 2013 Financial Markets & Corporate Governance Conference. Available at SSRN: http://ssrn.com/abstract=2010453 or http://dx.doi.org/10.2139/ssrn.2010453

Contact Information

Mark Humphery-Jenner
UNSW Australia - 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
University of New South Wales (UNSW) - 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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