The Effect of Cross-Border Acquisitions on Shareholder Wealth — Evidence from Switzerland

  • Felix Lowinski
  • Dirk Schiereck
  • Thomas W. Thomas

Abstract

We analyze the wealth effects of 114 domestic and international acquisitions announced by Swiss corporations between 1990 and 2001. We find no difference between national and cross-border mergers. This may indicate that the international capital markets are highly integrated and is in contrast to recent empirical findings on a prevailing segmentation of capital markets within Europe. We also analyze the role of professional advisors in Swiss M&A transactions. Our results indicate that the expenses for professional advice might outweigh the potential benefits.

acquisitions capital market integration corporate control cross-border acquisitions mergers investment banks Switzerland 

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Copyright information

© Kluwer Academic Publishers 2004

Authors and Affiliations

  • Felix Lowinski
    • 1
  • Dirk Schiereck
    • 2
  • Thomas W. Thomas
    • 3
  1. 1.Department of Economics and ManagementWitten/Herdecke UniversityWittenGermany, Tel:
  2. 2.Endowed Chair of Banking and Finance, Schloss ReichartshausenEuropean Business SchoolOestrich-WinkelGermany, Tel:
  3. 3.Berkeley, IIRUniversity of CaliforniaBerkeley

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