Abstract

https://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)

July 17, 2016

Strategic Management Journal, Forthcoming
2013 Financial Markets & Corporate Governance Conference
25th Australasian Finance and Banking Conference 2012
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’ experience and networks that result from prior deals in target countries. 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: 40

Keywords: Mergers and acquisitions, private equity, information asymmetries

JEL Classification: G34, G32, G24


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Date posted: February 25, 2012 ; Last revised: September 19, 2016

Suggested Citation

Humphery-Jenner, Mark and Sautner, Zacharias and Suchard, Jo-Ann, Cross-Border Mergers and Acquisitions: The Role of Private Equity Firms (July 17, 2016). 25th Australasian Finance and Banking Conference 2012; Strategic Management Journal, Forthcoming; 25th Australasian Finance and Banking Conference 2012; 2013 Financial Markets & Corporate Governance Conference; UNSW Australian School of Business Research Paper No. 2012 BFIN 10. Available at SSRN: https://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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