Location Strategies and Value Creation of International Mergers and Acquisitions

Ludivine Chalençon is Associate Professor at IAE Lyon, Université Jean Moulin Lyon in France where she teaches corporate finance.

• Acknowledgements ixGeneral Introduction  xiPart 1. Location and Performance of Mergers and Acquisitions 1Introduction to Part 1  3Chapter 1. Characteristics and Location of Mergers and Acquisitions 51.1. Modes of conduct of mergers and acquisitions 61.1.1. The characteristics of mergers and acquisitions  61.1.2. Mergers and acquisitions as modes of entry on foreign markets 181.2. International development by means of mergers and acquisitions  321.2.1. Geographic distance and economic growth 331.2.2. Quality of institutions and cultural differences  381.3. Conclusion 47Chapter 2. Analysis of the Performance of Mergers and Acquisitions 492.1. Theoretical perspectives 502.1.1. The perspective of industrial economy  502.1.2. The perspectives of informational efficiency and organizational finance 572.2. Performance of mergers and acquisitions 682.2.1. Measuring the performance of mergers and acquisitions 682.2.2. Value creation factors  772.3. Conclusion 99Conclusion to Part 1  103Part 2. Methodology of the Empirical Study 105Introduction to Part 2  107Chapter 3. Research Methodology 1093.1. Methodological choices 1093.1.1. Epistemological stance  1103.1.2. Event studies 1133.2. Statistical analysis 1403.2.1. Simple and multiple linear regressions  1403.2.2. Logistic regressions 1453.2. Conclusion 151Chapter 4. Presentation of the Empirical Study  1534.1. The constitution of the sample  1544.1.1. The selection of the sample contents 1544.1.2. Data collection  1584.2. Descriptive analysis of the sample 1714.2.1. The main sample 1714.2.2. A focus on “clustered” announcements  1934.3. Conclusion 195Conclusion to Part 2  197Part 3. Location and Value Creation of Mergers and Acquisitions by French Acquirers  199Introduction to Part 3  201Chapter 5. Determinants of Location of Mergers and Acquisitions 2035.1. Geographic distance and economic growth  2075.1.1. The impact of geographic distance 2085.1.2. The role of economic growth  2125.2. The quality of institutions and cultural differences 2165.2.1. The influence of the quality of institutions  2165.2.4. The impact of cultural differences 2205.2.5. The global research model 2245.3. Conclusion 227Chapter 6. Determinants of Value Creation of Mergers and Acquisitions  2316.1. Value creation and acquirer focus 2326.1.1. The analysis of the reaction of financial markets  2326.1.2. Characteristics of the acquirer 2446.2. Target focus and operation  2576.2.1. Characteristics of the target 2586.2.2. Characteristics of the operation 2776.3. Conclusion 292Conclusion to Part 3  297General Conclusion 299Appendices  315Appendix 1. 317Appendix 2. 319Appendix 3. 321Appendix 4. 323Appendix 5. 325Appendix 6. 327Appendix 7. 329Appendix 8. 331Bibliography  333Index 363