A study of the effect on corporate value by global responsiveness of acquiring companies in cross-border M&A

Abstract

The purpose of this study is to research the possibility that the global responsiveness of overseas subsidiaries and companies with many overseas businesses may increase the success rate in cross-border M&A by Japanese companies. In this regard, there is little accumulation in previous studies. We analyze the reaction of the stock market to cross-border M&A using the event study method, and further analyze multiple regression analysis on the overseas sales ratio to the market effect. As a result, it is clarified that the market is negatively evaluated for cross-border M&A. Further it indicates positive evaluation by the market for the global responsiveness when Japanese companies with many overseas businesses conduct transactions through overseas subsidiaries.