The value of foreign ownership
<p>We use firm level data on cross-border mergers and acquisitions and share prices to explore the extent to which foreign ownership increases the profitability of firms in emerging markets. We find that cross-border ac&not;quisitions add value to target firms. However, there is onl...
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| Format: | Article |
| Language: | English |
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University of Ljubljana
2011-12-01
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| Series: | Economic and Business Review |
| Online Access: | http://www.ebrjournal.net/ojs/index.php/ebr/article/view/81 |
| Summary: | <p>We use firm level data on cross-border mergers and acquisitions and share prices to explore the extent to which foreign ownership increases the profitability of firms in emerging markets. We find that cross-border ac&not;quisitions add value to target firms. However, there is only weak evidence that such acquisitions add more value than purely domestic acquisitions. Further, most of this latter effect occurs when the target firm&rsquo;s country is in a crisis.</p> |
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| ISSN: | 1580-0466 |