Size Effect and Corporate Governance in Cross-Border M&As

• 발행기관: People & Global Business Association
• 저자명: Ki young Chang Yong Cheol Kim Yew mun Yip
• 간행물 정보: 『Global Business and Finance Review』Vol.14 No.1, 23~35쪽, 전체 13쪽
• 주제분류: 경제경영 > 경영학
• 파일형태: PDF
• 발행일자: 2009.06.30

영문 초록

We examine a sample of 638 cross-border acquisitions by U.S. public firms from 1996 to 2002. Small acquiring firms earn a statistically significant three-day cumulative abnormal announcement return of 2.33%, while large acquirers earn statistically not significant negative return of 0.27%. The observed acquiring firm size effect is robust regardless of the deal and acquirer characteristics, and sample periods. However, unlike domestic acquisitions, we do not observe a size effect for cross-border acquisitions of public target firms. Using the corporate governance index (G-index) developed by Gompers, Ishii, and Metrick (2003), we find that the observed size effect disappears when the buyers have a good corporate governance system in place. Our results suggest that managerial selfinterest or hubris drives the observed size effect.

목차

Abstract

Ⅰ. Introduction

Ⅱ. Data and Methodology

Ⅲ. Acquiring Firm's Announcement Returns

Ⅳ. Can Deal and Firm Characteristics Explain Size Effect?

Ⅴ. Does Hubris or Managerial Self-Interest Drive Size Effect?

Ⅵ. Conclusion

References

Biographies