This study examines the effect of using toeholds in domestic and cross-border acquisitionprocesses on the bidder’s acquisition performance. The sample constitutes 1,701 acquisitionsof European listed firms over the period 2003-2016. Results reveal significant evidence of anadverse effect of toeholds on the bidder’s acquisition performance. However, in cross-borderacquisitions, the use of toeholds results on average in significantly higher abnormal returns.Finally, the use of toeholds is found to be more efficient in target countries with a civil-lawsystem compared to countries with a common-law system. Overall, these findings increase ourunderstanding of management actions about the application of toeholds as an acquisitionstrategy.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:uu-328145 |
| Date | January 2017 |
| Creators | Wilmink, Wouter |
| Publisher | Uppsala universitet, Företagsekonomiska institutionen |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
Page generated in 0.0019 seconds