The impact of institutional investors on mergers and acquisitions in the United Kingdom
Andriosopoulos, Dimitris and Yang, Shuai (2015) The impact of institutional investors on mergers and acquisitions in the United Kingdom. Journal of Banking and Finance, 50. pp. 547-561. ISSN 0378-4266 (https://doi.org/10.1016/j.jbankfin.2014.06.004)
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Abstract
In this paper we investigate the impact of institutional ownership on UK mergers and acquisitions. We employ a comprehensive sample of M&As conducted by UK acquirers from 2000 to 2010, thus including a full cycle of peak and trough in M&A waves. We find that institutional investors increase the likelihood of an M&A to be a large, cross-border deal, opting for full control. Moreover, institutional ownership concentration and foreign institutional ownership increase the likelihood of cross-border M&As. In addition, we assess the influence of institutional shareholders’ investment horizon and find that while investment horizon have a negative influence in encouraging cross-border M&As, the presence of long-term investors encourages larger M&As. Finally, even after controlling for the 2007-08 financial crisis the market reacts negatively to the announcement of cross-border M&As.
ORCID iDs
Andriosopoulos, Dimitris ORCID: https://orcid.org/0000-0003-3033-2308 and Yang, Shuai;-
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Item type: Article ID code: 48979 Dates: DateEvent31 January 2015Published13 June 2014Published Online3 June 2014AcceptedNotes: . NOTICE: This is the author’s version of a work that was accepted for publication in the Journal of Banking and Finance. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Banking and Finance, DOI: 10.1016/j.jbankfin.2014.06.004 Subjects: Social Sciences > Finance
Social Sciences > Commerce
Social Sciences > Economic TheoryDepartment: Strathclyde Business School > Accounting and Finance Depositing user: Pure Administrator Date deposited: 24 Jul 2014 10:17 Last modified: 05 Dec 2024 01:10 Related URLs: URI: https://strathprints.strath.ac.uk/id/eprint/48979