DOMESTIC VS CROSS BORDER MERGERS AND ACQUISITIONS: AN ANALYSIS OF THEIR FINANCIAL PERFORMANCE IN COMPARISON: GERMANY

• Main Author: Ignacia Sihombing, Kimberly
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/87442
• Institution: Institut Teknologi Bandung

A significant portion of mergers and acquisitions (M&As) activities involves compani hailing from developed nations rather than their developing counterparts. Germany, being one of the developed nations, actively engages in both domestic and cross-border mergers and acquisitions. This study delves into the realm of German firms' acquisitions, scrutinizing t distinctions and comparative advantages between cross-border and domestic transactions. Specifically, we focus on analyzing the Return on Equity (ROE) and Return on Assets (RO of these firms. Through an event study and multiple linear regression analysis, our resul highlight that ROE serves as a more effective metric in delineating disparities betwe Domestic and Cross-Border companies. Furthermore, the ROE observed in Cross-Border companies surpasses that of their Domestic counterparts. In essence, our findings furni empirical support indicating that cross-border M&As yield superior returns compared to domestic M&As.