Multilatinas and value creation from cross-border acquisitions: An event study approach

The central proposition of this paper is to assess the performance of cross-border acquisitions made by Multilatinas. Applying the event study method to a sample of 607 announcements of acquisitions during the period 1989-2011 by 182 Multilatinas from Argentina, Brazil, Chile, Colombia, Mexico, Peru...

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Autores: Dakessian, Leon Chant, Feldmann, Paulo Roberto
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2013
País:Brasil
Institución:Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)
Repositorio:BAR - Brazilian Administration Review
Idioma:inglés
OAI Identifier:oai:ojs3.bar.anpad.org.br:article/229
Acceso en línea:https://bar.anpad.org.br/index.php/bar/article/view/229
Access Level:acceso abierto
Palabra clave:internationalization
internalization theory
event study
multilatinas
abnormal returns
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spelling Multilatinas and value creation from cross-border acquisitions: An event study approachinternationalizationinternalization theoryevent studymultilatinasabnormal returnsThe central proposition of this paper is to assess the performance of cross-border acquisitions made by Multilatinas. Applying the event study method to a sample of 607 announcements of acquisitions during the period 1989-2011 by 182 Multilatinas from Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela, we conclude that: (a) on average, these announcements have a neutral impact on the short-term returns to acquiring companies' shareholders; (b) cross-sectional analysis reveals that relative size of the deals have a negative and significant effect on investors' reactions and; (c) unlike the institutional distance between home and host countries, cultural distance matters, since it has a negative and significant effect on the perceptions that investors have regarding the expected economic impact of acquirers' cross-border merger and acquisition (M&A) decisions. Inasmuch as the market rationality assumption that underlies the event study method has been questioned, future research lines are proposed in order to search for alternative long-term performance constructs concerning M&A processes in general that can: (a) shed light on the reality of value creation (and destruction) from cross-border acquisitions made by Multilatinas; and (b) contribute to strategy, international business and M&A theories and practice.ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração2013-10-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfhttps://bar.anpad.org.br/index.php/bar/article/view/22910.1590/S1807-76922013000400006Brazilian Administration Review; Vol. 10 No. 4 (2013): Oct/Dec - 2013; 462-4891807-7692reponame:BAR - Brazilian Administration Reviewinstname:Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)instacron:ANPADenghttps://bar.anpad.org.br/index.php/bar/article/view/229/218Copyright (c) 2019 Brazilian Administration Reviewhttps://creativecommons.org/licenses/by/4.0info:eu-repo/semantics/openAccessDakessian, Leon ChantFeldmann, Paulo Roberto2019-09-22T15:25:53Zoai:ojs3.bar.anpad.org.br:article/229Revistahttps://bar.anpad.org.br/index.php/bar/PUBhttps://bar.anpad.org.br/index.php/bar/oaibar-eic@anpad.org.br || bar@anpad.org.br1807-76921807-7692opendoar:2019-09-22T15:25:53BAR - Brazilian Administration Review - Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)false
dc.title.none.fl_str_mv Multilatinas and value creation from cross-border acquisitions: An event study approach
title Multilatinas and value creation from cross-border acquisitions: An event study approach
spellingShingle Multilatinas and value creation from cross-border acquisitions: An event study approach
Dakessian, Leon Chant
internationalization
internalization theory
event study
multilatinas
abnormal returns
title_short Multilatinas and value creation from cross-border acquisitions: An event study approach
title_full Multilatinas and value creation from cross-border acquisitions: An event study approach
title_fullStr Multilatinas and value creation from cross-border acquisitions: An event study approach
title_full_unstemmed Multilatinas and value creation from cross-border acquisitions: An event study approach
title_sort Multilatinas and value creation from cross-border acquisitions: An event study approach
dc.creator.none.fl_str_mv Dakessian, Leon Chant
Feldmann, Paulo Roberto
author Dakessian, Leon Chant
author_facet Dakessian, Leon Chant
Feldmann, Paulo Roberto
author_role author
author2 Feldmann, Paulo Roberto
author2_role author
dc.subject.por.fl_str_mv internationalization
internalization theory
event study
multilatinas
abnormal returns
topic internationalization
internalization theory
event study
multilatinas
abnormal returns
description The central proposition of this paper is to assess the performance of cross-border acquisitions made by Multilatinas. Applying the event study method to a sample of 607 announcements of acquisitions during the period 1989-2011 by 182 Multilatinas from Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela, we conclude that: (a) on average, these announcements have a neutral impact on the short-term returns to acquiring companies' shareholders; (b) cross-sectional analysis reveals that relative size of the deals have a negative and significant effect on investors' reactions and; (c) unlike the institutional distance between home and host countries, cultural distance matters, since it has a negative and significant effect on the perceptions that investors have regarding the expected economic impact of acquirers' cross-border merger and acquisition (M&A) decisions. Inasmuch as the market rationality assumption that underlies the event study method has been questioned, future research lines are proposed in order to search for alternative long-term performance constructs concerning M&A processes in general that can: (a) shed light on the reality of value creation (and destruction) from cross-border acquisitions made by Multilatinas; and (b) contribute to strategy, international business and M&A theories and practice.
publishDate 2013
dc.date.none.fl_str_mv 2013-10-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv https://bar.anpad.org.br/index.php/bar/article/view/229
10.1590/S1807-76922013000400006
url https://bar.anpad.org.br/index.php/bar/article/view/229
identifier_str_mv 10.1590/S1807-76922013000400006
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv https://bar.anpad.org.br/index.php/bar/article/view/229/218
dc.rights.driver.fl_str_mv Copyright (c) 2019 Brazilian Administration Review
https://creativecommons.org/licenses/by/4.0
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Copyright (c) 2019 Brazilian Administration Review
https://creativecommons.org/licenses/by/4.0
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração
publisher.none.fl_str_mv ANPAD - Associação Nacional de Pós-Graduação e Pesquisa em Administração
dc.source.none.fl_str_mv Brazilian Administration Review; Vol. 10 No. 4 (2013): Oct/Dec - 2013; 462-489
1807-7692
reponame:BAR - Brazilian Administration Review
instname:Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)
instacron:ANPAD
instname_str Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)
instacron_str ANPAD
institution ANPAD
reponame_str BAR - Brazilian Administration Review
collection BAR - Brazilian Administration Review
repository.name.fl_str_mv BAR - Brazilian Administration Review - Associação Nacional de Pós-Graduação e Pesquisa em Administração (ANPAD)
repository.mail.fl_str_mv bar-eic@anpad.org.br || bar@anpad.org.br
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