CEF.UP – FIN Seminar/Webinar

Thursday – June 15^th, 2023 at 1:00 p.m. | Room 305| Online

“M&A premiums: do Asian companies bid higher?”

Conrado García-Gómez  – Cef.up and University of Valladolid (joint work with Jorge Farinha, Ender Demir and José María Díez-Esteban)

Abstract:

“This study aims to investigate whether Asian companies pay higher premiums in cross-border M&A. We uniquely compare whether the cultural origin of the acquirer firm is a relevant determinant of the premium paid, namely for cross-border operations generated in Asia, Europe, and the United States. Using a large sample of cross-border M&A during the period 2003 to 2021, our baseline results suggest that the average premiums paid by Asian companies are double the size of the European or USA acquisition premiums. Our results are robust when considering some deal characteristics and for the case of Chinese and Japanese acquirers. We also find support for considering that, besides of economic motives, state-owned Chinese acquirers play a relevant role when involved in cross-border M&A, namely offering higher bids. Our research has some relevant implications not only for practitioners, but also for policy-makers.”