Do cross-border mergers-acquisitions in mature and emerging markets create similar value?

Purpose: The purpose of this paper is to compare the value creation of cross-border mergers and acquisitions (M&As) in mature and emerging markets. Design/methodology/approach: The empirical study is based on a sample of 285 cross-border M&As announced between 2010 and 2012 and completed by companies of the French SBF 120 index in 54 countries. Findings: The statistical analysis shows how financial markets react before and after the announcement of M&As. The obtained findings highlight significant differences: the reaction of financial markets before the announcement is moderately positive for M&As in mature economies, but negative for those in emerging economies; their reaction after the announcement is clearly positive for M&As in mature markets and moderately positive for those in emerging markets. Research limitations/implications: Future studies on M&A value creation should differentiate mature and emerging economies and adopt a more in-depth classification of target countries. Practical implications: This research emphasizes the necessity to consider country-specific factors for M&A value creation. Originality/value: The empirical study is based on a sample of French acquirers, who account for 3 percent of the volume and value of M&As in the world and whose operations are rarely studied in the literature. The authors compare the reaction of financial markets before and after the announcement of M&As conducted in mature and emerging economies.