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The Impact of the Financial Crisis on the Performance of European Acquisitions

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International Business and Institutions after the Financial Crisis

Part of the book series: The Academy of International Business ((AIB))

Abstract

Shareholder wealth accretion is difficult to predict under most circumstances (Doukas and Kan, 2006; Cartwright and Schoenberg, 2006) and it can become a herculean task when cast under the shadows of a financial crisis (Mody and Negishi, 2000). In this chapter, we examine the role of a supranational institution like the Economic and Monetary Union (EMU) on the value creation ability of mergers and acquisitions (M&As) for investors during the financial turmoil. We look at European acquisitions undertaken before and after the 2007–8 financial crisis to ascertain short-term shareholder returns. The majority of earlier studies either look at domestic versus international aspects of M&A deals without paying attention to the regional and supranational arrangements integrating different countries, or they have examined the performance of M&A deals during ‘normal’ times, which leaves out the effects of financial instability or economic recession within and across a political or economic union as a question yet to be answered.

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Authors
  1. Rekha Rao Nicholson
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  2. Julie Salaber
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Editor information

Editors and Affiliations

  1. Economics and Strategy Group, Aston Business School, UK

    Yama Temouri  & Chris Jones  & 

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© 2014 Rekha Rao Nicholson and Julie Salaber

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Nicholson, R.R., Salaber, J. (2014). The Impact of the Financial Crisis on the Performance of European Acquisitions. In: Temouri, Y., Jones, C. (eds) International Business and Institutions after the Financial Crisis. The Academy of International Business. Palgrave Macmillan, London. https://doi.org/10.1057/9781137367204_6

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