Empirical analysis of the success of German acquisitions in the United States
The main focus for the analysis of the success of transactions and its determinants for German cross-border acquisitions of U.S. targets is the perspective of the shareholders of the acquiring company. Accordingly, transaction success is measured using the event study methodology. However, as Bruner (2002) notes, the “task must be to look for patterns of confirmation across approaches and studies much like one sees an image in a mosaic of stones.”1 In order to obtain a qualitative assessment of transaction success the event study is complemented by a survey that is designed to yield additional insights from a managerial perspective. Accordingly, those executives of German companies that pursued an acquisition in the United States during the period 1990 to 2004 were asked to provide their evaluation of transaction success.
KeywordsAbnormal Return Event Window Cumulative Abnormal Return Target Company Transaction Success
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