21 Years of International M&As and Joint Ventures by Italian Medium-Sized Listed Firms: Value Creation or Value Destruction?

Research in International Business and Finance, Vol. 25, No. 1, pp. 75-87, 2011

Posted: 29 Jan 2010 Last revised: 3 Apr 2011

See all articles by Ottorino Morresi

Ottorino Morresi

Department of Economics, University of Rome "Roma Tre"

Alberto Pezzi

University of Rome III - Department of Management & Law

Abstract

This study provides evidence of the value creation of different equity entry modes in a sample of international investments performed by all Italian medium-sized listed firms in the period 1986-2006. Our research shows a positive and significant market reaction to announcements of internationalization strategies. The results are largely affected by high-equity entry modes carried out in advanced economies. Low-equity entry modes and international operations performed in emerging countries show no significant market reaction. We also find that the relative size of the deal, the firm age, the country risk, and the evolution of information disclosure regulation, matter in explaining the outcomes.

Keywords: Entry mode, Event study, Internationalization, Italian medium-sized firm, Joint venture, M&A, Value creation

JEL Classification: F23, G14, G34

Suggested Citation

Morresi, Ottorino and Pezzi, Alberto, 21 Years of International M&As and Joint Ventures by Italian Medium-Sized Listed Firms: Value Creation or Value Destruction?. Research in International Business and Finance, Vol. 25, No. 1, pp. 75-87, 2011, Available at SSRN: https://ssrn.com/abstract=1539388

Ottorino Morresi (Contact Author)

Department of Economics, University of Rome "Roma Tre" ( email )

Via Silvio D'amico, 77
Rome, Rome 00145
Italy
(+39) 0657335753 (Phone)

Alberto Pezzi

University of Rome III - Department of Management & Law ( email )

Via Silvio D'amico, 77
Rome, Rome 00145
Italy

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
935
PlumX Metrics