The impact of economic nationalism in Europe on the returns to rivals of cross‐border M&A bids

Abstract

We note throughout the paper that possible efficiency or technological gains or the ability to generate additional rents signaled at the time of the merger bid will give rise to a positive response on the merger announcement. However, part of the positive response to takeover announcement for rivals could also be due to the increased likelihood of additional bids within the target industry. Government intervention may then cause a reduction in bids (Dinc & Erel, 2013) for post-intervention periods as bidders may be deterred from bidding. To examine the impact of government intervention on takeover likelihood, we examine takeover rates for the affected industry-country to see if they decline relative to a pre-period. We use 2 years pre and post intervention for the industries impacted by government intervention for two periods, 1999-2000 and 2005-2006 and both periods combined. We examine bids for majority (> 50%) control and less than majority (< 50%) since EN might influence bid type.

Corporate social responsibility reporting and investment: Evidence from mergers and acquisitions

“…Our main analyses use a PSM sample. As a robustness check, we follow recent M&A research (e.g., Powell et al., 2022) and employ an entropy balancing analysis to address concerns about the potential issues associated with propensity‐score matching, including low levels of covariate balance and failure to jointly balance all the covariates (Chen et al., 2021; Hainmueller & Xu, 2013). The entropy balancing approach balances the mean, variance and skewness of the control variables across the treatment and control samples (Hainmueller, 2012).…”