Foreign takeovers of Australian listed entities
- Publication Type:
- Journal Article
- Australian Journal of Management, 2011, 36 (1), pp. 89 - 107
- Issue Date:
This study examines if Australian target firm abnormal returns and characteristics differ between Australian and foreign bidders. The results indicate that takeovers from foreign bidders are associated with higher target firm abnormal returns than bids from Australian firms. Overseas bidders also pay an additional premium for research-intensive target firms. Target firms that receive an offer from outside Australia are significantly larger, have lower leverage, and are more likely to operate in the resources sector. Foreign acquisitions are also more likely to be a friendly takeover. The relative exchange rate is not associated with the likelihood of a foreign takeover. There is no difference in takeover success or competition between domestic and foreign bids. © The Author(s) 2010.
Please use this identifier to cite or link to this item: