Publicação
The impact of securities regulation in the European Union on M&A: does it compensate to go beyond borders?
| Resumo: | Cross-border Mergers and Acquisitions (M&As) in the European Union (EU) are rather frequent and represent around one third of the overall number of deals. Acquirers of targets located in the EU must comply with takeover rules set individually by member states, but also with European Council Directives. The most significant of these Directives in the context of M&As, and the one that will be further discussed in my research work, is the Takeover Bids Directive (TBD). The intent of the Directive is to ensure equal treatment for all companies launching takeover bids or that are subject to a change in control, providing minimum harmonization rules in view of creating a transparent environment for cross-border takeovers. This study examines the short-term stock price reaction to M&A announcements and the long-term post-announcement returns of firms involved in M&As in the EU to test if there are differences in the performance of domestic and international deals. Then, I study the impact of the enactment of the TBD on announcement returns of cross-border M&As. I also examine other determinants of cross-border deals. To test my hypotheses, I use the event study methodology, buy-and-hold abnormal returns, difference-in-differences techniques and probabilistic models. Using a sample of 2197 M&As conducted between 2000 and 2015, I do not find evidence that there are significant differences among domestic and international M&As in the short- or in the long-term. Furthermore, I conclude that the TBD did not have any significant impact on the short-term performance of M&As and that it also failed in the attempt to foster cross-border deals in the EU. Nevertheless, and consistent with previous literature, I do find that firms located in member states with lower investor protection and civil law origin are more likely to be targeted in cross-border deals. |
|---|---|
| Autores principais: | Monteiro, Rita Sofia Ribeiro |
| Assunto: | Cross-border mergers and acquisitions European Union M&A determinants Regulation Takeover bids directive Determinantes das fusões e aquisições Diretiva relativa às ofertas públicas de aquisição Fusões e aquisições internacionais Regulação União Europeia |
| Ano: | 2020 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade do Minho |
| Idioma: | inglês |
| Origem: | RepositóriUM - Universidade do Minho |
| _version_ | 1866875763750338560 |
|---|---|
| author | Monteiro, Rita Sofia Ribeiro |
| author_facet | Monteiro, Rita Sofia Ribeiro |
| author_role | author |
| contributor_name_str_mv | Silva, Sónia Maria da Silva Faria Nogueira da Universidade do Minho |
| country_str | PT |
| creators_json_txt | [{\"Person.name\":\"Monteiro, Rita Sofia Ribeiro\"}] |
| datacite.contributors.contributor.contributorName.fl_str_mv | Silva, Sónia Maria da Silva Faria Nogueira da Universidade do Minho |
| datacite.creators.creator.creatorName.fl_str_mv | Monteiro, Rita Sofia Ribeiro |
| datacite.date.Accepted.fl_str_mv | 2020-01-01T00:00:00Z |
| datacite.date.available.fl_str_mv | 2021-01-19T15:39:15Z |
| datacite.date.embargoed.fl_str_mv | 2021-01-19T15:39:15Z |
| datacite.rights.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| datacite.subjects.subject.fl_str_mv | Cross-border mergers and acquisitions European Union M&A determinants Regulation Takeover bids directive Determinantes das fusões e aquisições Diretiva relativa às ofertas públicas de aquisição Fusões e aquisições internacionais Regulação União Europeia |
| datacite.titles.title.fl_str_mv | The impact of securities regulation in the European Union on M&A: does it compensate to go beyond borders? O impacto da regulação dos valores mobiliários na União Europeia nas fusões e aquisições: compensa ir além-fronteiras? |
| dc.contributor.none.fl_str_mv | Silva, Sónia Maria da Silva Faria Nogueira da Universidade do Minho |
| dc.creator.none.fl_str_mv | Monteiro, Rita Sofia Ribeiro |
| dc.date.Accepted.fl_str_mv | 2020-01-01T00:00:00Z |
| dc.date.available.fl_str_mv | 2021-01-19T15:39:15Z |
| dc.date.embargoed.fl_str_mv | 2021-01-19T15:39:15Z |
| dc.format.none.fl_str_mv | application/pdf |
| dc.identifier.none.fl_str_mv | https://hdl.handle.net/1822/69466 |
| dc.language.none.fl_str_mv | eng |
| dc.rights.cclincense.fl_str_mv | http://creativecommons.org/licenses/by-nc-nd/4.0/ |
| dc.rights.none.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| dc.rights.rights.copyright.fl_str_mv | openAccess |
| dc.subject.none.fl_str_mv | Cross-border mergers and acquisitions European Union M&A determinants Regulation Takeover bids directive Determinantes das fusões e aquisições Diretiva relativa às ofertas públicas de aquisição Fusões e aquisições internacionais Regulação União Europeia |
| dc.title.fl_str_mv | The impact of securities regulation in the European Union on M&A: does it compensate to go beyond borders? O impacto da regulação dos valores mobiliários na União Europeia nas fusões e aquisições: compensa ir além-fronteiras? |
| dc.type.none.fl_str_mv | http://purl.org/coar/resource_type/c_bdcc |
| description | Cross-border Mergers and Acquisitions (M&As) in the European Union (EU) are rather frequent and represent around one third of the overall number of deals. Acquirers of targets located in the EU must comply with takeover rules set individually by member states, but also with European Council Directives. The most significant of these Directives in the context of M&As, and the one that will be further discussed in my research work, is the Takeover Bids Directive (TBD). The intent of the Directive is to ensure equal treatment for all companies launching takeover bids or that are subject to a change in control, providing minimum harmonization rules in view of creating a transparent environment for cross-border takeovers. This study examines the short-term stock price reaction to M&A announcements and the long-term post-announcement returns of firms involved in M&As in the EU to test if there are differences in the performance of domestic and international deals. Then, I study the impact of the enactment of the TBD on announcement returns of cross-border M&As. I also examine other determinants of cross-border deals. To test my hypotheses, I use the event study methodology, buy-and-hold abnormal returns, difference-in-differences techniques and probabilistic models. Using a sample of 2197 M&As conducted between 2000 and 2015, I do not find evidence that there are significant differences among domestic and international M&As in the short- or in the long-term. Furthermore, I conclude that the TBD did not have any significant impact on the short-term performance of M&As and that it also failed in the attempt to foster cross-border deals in the EU. Nevertheless, and consistent with previous literature, I do find that firms located in member states with lower investor protection and civil law origin are more likely to be targeted in cross-border deals. |
| dirty | 0 |
| eu_rights_str_mv | openAccess |
| format | masterThesis |
| fulltext.url.fl_str_mv | https://prod-dspace.uminho.pt/bitstreams/e1d25606-c5ea-42d9-b11c-e2e987a1c579/download |
| id | rum_70f2afee4c5fd966ae18be4a4e5cdc07 |
| identifier.url.fl_str_mv | https://hdl.handle.net/1822/69466 |
| instacron_str | repositorium |
| institution | Universidade do Minho |
| instname_str | Universidade do Minho |
| language | eng |
| network_acronym_str | rum |
| network_name_str | RepositóriUM - Universidade do Minho |
| oai_identifier_str | oai:repositorium.uminho.pt:1822/69466 |
| organization_str_mv | urn:organizationAcronym:repositorium |
| person_str_mv | Monteiro, Rita Sofia Ribeiro |
| publishDate | 2020 |
| reponame_str | RepositóriUM - Universidade do Minho |
| repository_id_str | urn:repositoryAcronym:rum |
| service_str_mv | urn:repositoryAcronym:rum |
| spelling | engporCross-border Mergers and Acquisitions (M&As) in the European Union (EU) are rather frequent and represent around one third of the overall number of deals. Acquirers of targets located in the EU must comply with takeover rules set individually by member states, but also with European Council Directives. The most significant of these Directives in the context of M&As, and the one that will be further discussed in my research work, is the Takeover Bids Directive (TBD). The intent of the Directive is to ensure equal treatment for all companies launching takeover bids or that are subject to a change in control, providing minimum harmonization rules in view of creating a transparent environment for cross-border takeovers. This study examines the short-term stock price reaction to M&A announcements and the long-term post-announcement returns of firms involved in M&As in the EU to test if there are differences in the performance of domestic and international deals. Then, I study the impact of the enactment of the TBD on announcement returns of cross-border M&As. I also examine other determinants of cross-border deals. To test my hypotheses, I use the event study methodology, buy-and-hold abnormal returns, difference-in-differences techniques and probabilistic models. Using a sample of 2197 M&As conducted between 2000 and 2015, I do not find evidence that there are significant differences among domestic and international M&As in the short- or in the long-term. Furthermore, I conclude that the TBD did not have any significant impact on the short-term performance of M&As and that it also failed in the attempt to foster cross-border deals in the EU. Nevertheless, and consistent with previous literature, I do find that firms located in member states with lower investor protection and civil law origin are more likely to be targeted in cross-border deals.application/pdfporThe impact of securities regulation in the European Union on M&A: does it compensate to go beyond borders?AlternativeTitleporO impacto da regulação dos valores mobiliários na União Europeia nas fusões e aquisições: compensa ir além-fronteiras?Monteiro, Rita Sofia RibeiroSilva, Sónia Maria da Silva Faria Nogueira daHostingInstitutionOrganizationalUniversidade do Minhoe-mailmailto:repositorium@usdb.uminho.ptrepositorium@usdb.uminho.ptURNurn:tid:2025377732021-01-19T15:39:15Z202020202020-01-01T00:00:00ZHandlehttps://hdl.handle.net/1822/69466http://purl.org/coar/access_right/c_abf2open accessCross-border mergers and acquisitionsEuropean UnionM&A determinantsRegulationTakeover bids directiveDeterminantes das fusões e aquisiçõesDiretiva relativa às ofertas públicas de aquisiçãoFusões e aquisições internacionaisRegulaçãoUnião Europeia2198881 bytesliteraturehttp://purl.org/coar/resource_type/c_bdccmaster thesis2020http://creativecommons.org/licenses/by-nc-nd/4.0/openAccesshttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://prod-dspace.uminho.pt/bitstreams/e1d25606-c5ea-42d9-b11c-e2e987a1c579/download |
| spellingShingle | The impact of securities regulation in the European Union on M&A: does it compensate to go beyond borders? Monteiro, Rita Sofia Ribeiro Cross-border mergers and acquisitions European Union M&A determinants Regulation Takeover bids directive Determinantes das fusões e aquisições Diretiva relativa às ofertas públicas de aquisição Fusões e aquisições internacionais Regulação União Europeia |
| status | SINGLETON |
| subject.fl_str_mv | Cross-border mergers and acquisitions European Union M&A determinants Regulation Takeover bids directive Determinantes das fusões e aquisições Diretiva relativa às ofertas públicas de aquisição Fusões e aquisições internacionais Regulação União Europeia |
| title | The impact of securities regulation in the European Union on M&A: does it compensate to go beyond borders? |
| title_full | The impact of securities regulation in the European Union on M&A: does it compensate to go beyond borders? |
| title_fullStr | The impact of securities regulation in the European Union on M&A: does it compensate to go beyond borders? |
| title_full_unstemmed | The impact of securities regulation in the European Union on M&A: does it compensate to go beyond borders? |
| title_short | The impact of securities regulation in the European Union on M&A: does it compensate to go beyond borders? |
| title_sort | The impact of securities regulation in the European Union on M&A: does it compensate to go beyond borders? |
| topic | Cross-border mergers and acquisitions European Union M&A determinants Regulation Takeover bids directive Determinantes das fusões e aquisições Diretiva relativa às ofertas públicas de aquisição Fusões e aquisições internacionais Regulação União Europeia |
| topic_facet | Cross-border mergers and acquisitions European Union M&A determinants Regulation Takeover bids directive Determinantes das fusões e aquisições Diretiva relativa às ofertas públicas de aquisição Fusões e aquisições internacionais Regulação União Europeia |
| url | https://hdl.handle.net/1822/69466 |
| visible | 1 |