In this paper, over 3500 takeover announcements with a United States acquirer and a foreign target between the 1st of January 2013 and the 31st of December 2018 were used to examine the effect of the target country’s development level on the bidder firm’s announcement effect. To determine the level of development and to make sure the results were robust against different measuring methods, the Human Development Index, Human Capital Index, Gross National Income per capita and the International Country Risk Guide were used. No significant influence of development as measured in the Human Development Index and Gross National Income per capita was found. However, higher target country development based on the Human Capital Index and the International Country Risk Guide was found to have a negative influence on the bidder’s announcement effect. In conclusion, no evidence is found that the target country’s development in general has a unified effect on the bidder’s announcement effect.

Additional Metadata
Thesis Advisor Bliek, R. de
Persistent URL hdl.handle.net/2105/49387
Series Economics
Citation
Looijen, M.C. (2019, July 4). US cross-border acquisitions: What effect does the level of development of a target\'s country have on the announcement effect for US bidders. Economics. Retrieved from http://hdl.handle.net/2105/49387