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Intra-industry and inter-country effects of European mergers

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  • Jorg Bley
  • Jeff Madura

Abstract

We empirically test the valuation effects of European M&A announcements on rivals within the target's country (intra-industry effects) and on other European rivals (inter-country effects), for the period of 1996 to 1999. We find evidence of inter-country effects that has not previously been documented, suggesting that the ongoin integration of European economies, supported by the introduction of the euro, facilitates the transmission of private information across country boundaries in Europe. We also conduct a cross-sectional analysis to isolate potential sources of intra-industry and inter-country effects. *** DIRECT SUPPORT *** A00DH017 00007 Copyright Springer 2003

Suggested Citation

  • Jorg Bley & Jeff Madura, 2003. "Intra-industry and inter-country effects of European mergers," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 27(3), pages 373-395, September.
    • Handle: RePEc:spr:jecfin:v:27:y:2003:i:3:p:373-395
    DOI: 10.1007/BF02761572
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    References listed on IDEAS

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    Cited by:

    1. Pablo, Eduardo, 2009. "Determinants of cross-border M&As in Latin America," Journal of Business Research, Elsevier, vol. 62(9), pages 861-867, September.
    2. Alcalde, Nuria & Powell, Ronan, 2022. "Government intervention in European mergers and acquisitions," The North American Journal of Economics and Finance, Elsevier, vol. 61(C).
    3. Jan-Peer Laabs & Dirk Schiereck, 2010. "The long-term success of M&A in the automotive supply industry: determinants of capital market performance," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 34(1), pages 61-88, January.

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