Publication:
Financial Flexibility, Bidder’s M&A Performance, and the Cross-Border Effect

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Date
2016
Authors
Lameijer, Marloes
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Research Projects
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Abstract
This study investigates the effect of the value of financial flexibility on bidder’s merger and acquisition (M&A) performance, including the differences between domestic and cross-border M&As and the effect of the financial crisis. Using data gathered between 2005-2012 of 3,882 M&As with the bidder from developed Europe or the U.S., OLS regressions are used to predict the effect of value of financial flexibility on the bidder’s cumulative abnormal returns (CARs). Findings reveal partial evidence to support a positive effect of the value of financial flexibility and the cross-border effect on bidder’s M&A performance. Collectively, these findings increase understanding of the interdependence of financial flexibility and investments.
Description
Publisher: Uppsala universitet, Företagsekonomiska institutionen ; Source: http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-277274 ; Level: Bachelor
Keywords
financial flexibility, mergers and acquisitions (M&As), cross-border effect, financial crisis
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