Investor reactions to international acquisition announcements.
This study aims to examine the impact of cultural distance and corporate governance mechanisms on investors’ reactions to cross-border acquisitions. We base our study on a sample of 279 acquisition deals performed by publicly listed U.S. firms over 10 years. Our regression results indicate...
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sg-ntu-dr.10356-436632023-05-19T06:16:14Z Investor reactions to international acquisition announcements. Nguyen Thi, Van Thanh. Nguyen, Phuong Huyen. Mai, Quoc Bao. Kang Soon Lee, Eugene Nanyang Business School DRNTU::Business::Finance::Mergers and acquisitions This study aims to examine the impact of cultural distance and corporate governance mechanisms on investors’ reactions to cross-border acquisitions. We base our study on a sample of 279 acquisition deals performed by publicly listed U.S. firms over 10 years. Our regression results indicate that improving certain aspects of corporate governance,namely proportion of equity ownership by inside/independent directors, will lead to more positive abnormal returns. However, there is insufficient evidence to conclude any relationship between proportion of independent director/ independence of chairman and investors’ reactions. There is also no significant evidence to conclude a relationship between cultural distance and investors’ reactions. However, various interaction terms between cultural distance and corporate governance mechanisms show significant coefficients in the regression model. Specifically, the presence of an independent chairman and the proportion of equity held by inside/independent directors appear to mitigate the negative relationship between investors’ reactions and cultural distance between the U.S. and the countries of the target firms. BUSINESS 2011-04-18T06:59:04Z 2011-04-18T06:59:04Z 2011 2011 Final Year Project (FYP) http://hdl.handle.net/10356/43663 en Nanyang Technological University 54 p. |
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DRNTU::Business::Finance::Mergers and acquisitions Nguyen Thi, Van Thanh. Nguyen, Phuong Huyen. Mai, Quoc Bao. Investor reactions to international acquisition announcements. |
description |
This study aims to examine the impact of cultural distance and corporate governance
mechanisms on investors’ reactions to cross-border acquisitions. We base our study on a
sample of 279 acquisition deals performed by publicly listed U.S. firms over 10 years.
Our regression results indicate that improving certain aspects of corporate governance,namely proportion of equity ownership by inside/independent directors, will lead to more positive abnormal returns. However, there is insufficient evidence to conclude any relationship between proportion of independent director/ independence of chairman and investors’ reactions. There is also no significant evidence to conclude a relationship between cultural distance and investors’ reactions.
However, various interaction terms between cultural distance and corporate governance
mechanisms show significant coefficients in the regression model. Specifically, the
presence of an independent chairman and the proportion of equity held by inside/independent directors appear to mitigate the negative relationship between
investors’ reactions and cultural distance between the U.S. and the countries of the
target firms. |
author2 |
Kang Soon Lee, Eugene |
author_facet |
Kang Soon Lee, Eugene Nguyen Thi, Van Thanh. Nguyen, Phuong Huyen. Mai, Quoc Bao. |
format |
Final Year Project |
author |
Nguyen Thi, Van Thanh. Nguyen, Phuong Huyen. Mai, Quoc Bao. |
author_sort |
Nguyen Thi, Van Thanh. |
title |
Investor reactions to international acquisition announcements. |
title_short |
Investor reactions to international acquisition announcements. |
title_full |
Investor reactions to international acquisition announcements. |
title_fullStr |
Investor reactions to international acquisition announcements. |
title_full_unstemmed |
Investor reactions to international acquisition announcements. |
title_sort |
investor reactions to international acquisition announcements. |
publishDate |
2011 |
url |
http://hdl.handle.net/10356/43663 |
_version_ |
1770563602444451840 |