Does market misvaluation drive cross-border M&As?

IF 5.4 2区经济学 Q1 BUSINESS, FINANCE

Journal of International Financial Markets Institutions & Money Pub Date : 2024-02-06 DOI:10.1016/j.intfin.2024.101960

Wenxuan Huang , Weidong Xu , Donghui Li , Ling Zhao , Shijie Yang

引用次数: 0

Abstract

Employing a panel sample of 61,532 cross-border mergers between 2000 and 2020, we investigate the impact of market misvaluation on corporate cross-border mergers and acquisitions (CBMAs). We find that firms with higher market misvaluation launch more CBMAs and tend to pay with their overvalued stock. However, the effect of market misvaluation on CBMAs will weaken over time. CBMAs driven by high market misvaluation result in lower short-term stock returns and better long-term profitability. Cross-sectional analyses show that the impact of market misvaluation on CBMAs can be mitigated by stronger country-level uncertainty avoidance and masculinism culture, while it is more pronounced in high individualism culture. At the firm level, the monitoring role of institutional investors and analysts can mitigate the impact of market misvaluation on CBMAs. Our results remain robust in various robustness tests and after addressing endogeneity concerns.

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市场错误估值是否会推动跨国并购？

我们利用 2000 年至 2020 年间 61,532 起跨国并购的面板样本，研究了市场估值失当对企业跨国并购（CBMA）的影响。我们发现，市场错误估值越高的公司发起的跨国并购越多，并且倾向于用高估的股票进行支付。然而，市场错误估值对跨国并购的影响会随着时间的推移而减弱。由高市场错误估值驱动的CBMA会导致较低的短期股票回报率和较好的长期盈利能力。横截面分析表明，如果国家层面的不确定性规避和男性主义文化较强，市场错误估值对CBMA的影响就会减弱，而在高个人主义文化中，市场错误估值对CBMA的影响则更为明显。在公司层面，机构投资者和分析师的监督作用可以减轻市场错误估值对牛熊证的影响。我们的结果在各种稳健性检验和解决内生性问题后仍然是稳健的。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of International Financial Markets Institutions & Money Multiple-

CiteScore

6.60

自引率

10.00%

发文量

142

期刊介绍： International trade, financing and investments, and the related cash and credit transactions, have grown at an extremely rapid pace in recent years. The international monetary system has continued to evolve to accommodate the need for foreign-currency denominated transactions and in the process has provided opportunities for its ongoing observation and study. The purpose of the Journal of International Financial Markets, Institutions & Money is to publish rigorous, original articles dealing with the international aspects of financial markets, institutions and money. Theoretical/conceptual and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • International financial markets • International securities markets • Foreign exchange markets • Eurocurrency markets • International syndications • Term structures of Eurocurrency rates • Determination of exchange rates • Information, speculation and parity • Forward rates and swaps • International payment mechanisms • International commercial banking; • International investment banking • Central bank intervention • International monetary systems • Balance of payments.