indicates returns estimated using a market model with an international market index. “DMM” uses a domestic market index.
Kang (1993)
0.0059 Japanese buyers
119
1975–1988
–1,0
Focus is non-U.S. buyers of U.S. targets.
–0.029. U.S. buyers Difference is significant at 5%.
102
Mathur et al. (1994)
–0.0026
77
1984–1988
–1,+1
Focus is non-U.S. buyers of U.S. targets.
Servaes, Zenner (1994)
0.0044 takeovers 0.0005 units and minority interests
70
1979–1988
–1,0
Focus is non-U.S. buyers of U.S. targets.
Eun, Kolodny, Scheraga (1996)
–0.0120 all observations 0.0318 Canadian buyers 0.0362 Japanese buyers –0.0428 U.K. buyers –0.0046 all other buyers
117
1979–1990
–5,0
Focus is non-U.S. buyers of U.S. targets.
Cakici et al. (1996)
0.0046* foreign bidder 0.0000 U.S. bidder
195
1983–1992
–1,0
Focus is non-U.S. buyers of U.S. targets.
Doukas, Travlos (1988)
0.009 All observations –0.0003 operating in target’s country 0.011 not operating in target’s country 0.0199* going abroad first time
301
1975–1983
–1,0
Focus is U.S. buyers of foreign targets.
Pettway, Sicherman, Speiss, (1993)
0.0152†
16
1981–1991
–1,0
Focus is Japanese buyers of U.S. targets.
Markides, Ittner (1994)
0.0032 all observations 0.0055 related acquisitions –0.0087 unrelated
274
1975–1988
–1,0
Focus is U.S. buyers of foreign targets.
Yook, McCabe (1996)
0.0046 all observations 0.0085 large acquisitions
98
1979–1989
–1,0
Focus is U.S. buyers of foreign targets.
Biswas et al. (1997)
0.00126 all observations 0.00277 U.S. buyer, foreign target 0.00015 foreign buyers, foreign targets –0.00399* U.S. buyer and target
125
1977–1987
–1,0
Focus is buyers of foreign targets.
Kiymaz, Mukherjee (2000)
Strong effects of monthly stock returns and relative GNP growth rates of two countries.
112
1982–1991
–1,0
Focus is U.S. buyers of foreign targets.
Eckbo, Thorburn (2000)
–0.0030 U.S. buyers 0.0171 Canadian buyers
390 1,261
1964–1983
–1,0
Focus is U.S. and Canadian buyers of Canadian firms.
Kuipers, Miller, Patel (2003)
–0.92% –$31.26MM
138
1982–1991
–1,0
Focus is foreign acquirers of U.S. targets.
* Significant at the 95 percent confidence level.
† Significant at the 99 percent confidence level.
EXHIBIT 5.9
Study
Cumulative Abnormal Returns
Sample Size
Sample Period
Event Window (Days)
Notes
Eun, Kolodny, Scheraga (1996)
$68 million, average combined wealth changes. $398 million.
117
1979–1990
–5,0
Focus is non-U.S. buyers and U.S. targets.
Biswas et al. (1997)
$135.4 million, average combined wealth changes, international acquisitions; 3.39% as percentage of size. $2.04 million, domestic acquisitions; 2.02% as percentage of size. Both are significant at 5%.
125
1977–1987
–5,+5
Focus is buyers of foreign targets.
Kuipers, Miller, Patel (2003)
+2.99%* $121.86 MM†
120
1982–1991
–1,0
Focus is U.S. targets and foreign acquirers.
* Significant at 95 percent confidence level.
† Significant at 99 percent confidence level.
STRATEGIC
indicates returns estimated using a market model with an international market index. “DMM” uses a domestic market index.
