Analysis of U.S. Acquirers’ Performance Following Cross-Border Mergers and Acquisitions
Cross-border mergers and acquisitions are complex business operations that have become increasingly popular in recent years because of their ability to help firms achieve several benefits, including but not limited to economies of scale, improved access to resources, and increased shareholder wealth. Due to the complex nature of integrating companies from different nations and cultures, studies show that firms undertaking cross-border mergers and acquisitions can have varying levels of success. The aim of this study is to determine which characteristics of U.S. acquirers in cross-border M&A are associated with long-term abnormal returns in stock price. Research suggests that factors leading to successful U.S. acquisitions of foreign companies include target firms cross-listing on U.S. exchanges and acquisitions of companies in segmented financial markets. The findings of this study will provide insight into characteristics that contribute to the success of U.S. acquirers in cross-border M&A.