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Cross-border acquisitions and financial leverage of UK acquirers / by Henry Agyei-Boapeah.

By: Material type: Continuing resourceContinuing resourceSeries: Accounting Forum | ; Volume 39, Issue 2 (June 2015)Publication details: --Amsterdam: Elsevier, 2015.Description: pages 97-108Subject(s): DDC classification:
  • BPer. 657.05 Ac27
Abstract: Based on a sample of 782 acquisitions bu UK firms during 1982-2009, this paper examines the impact of cross-border acquisitions on financial leverage. The paper shows that cross-border acquisitions have a negative impact on the financial leverage of acquiring firms. However, the negative impact of cross-border acquisitions disappears are underataken by multinational firms. Collectively, the findings imply that exposure to foreign markets reduces the borrowing ability of acquiring firms especially when they choose targets from developing countries, and when they have no previous experience in foreign markets.
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Bansalan Periodicals Bansalan Periodicals UM Bansalan College LIC BPer. 657 Ac27 (Browse shelf(Opens below)) Not For Loan

Based on a sample of 782 acquisitions bu UK firms during 1982-2009, this paper examines the impact of cross-border acquisitions on financial leverage. The paper shows that cross-border acquisitions have a negative impact on the financial leverage of acquiring firms. However, the negative impact of cross-border acquisitions disappears are underataken by multinational firms. Collectively, the findings imply that exposure to foreign markets reduces the borrowing ability of acquiring firms especially when they choose targets from developing countries, and when they have no previous experience in foreign markets.

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