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Cross-border acquisitions and financial leverage of UK acquirers

Agyei-Boapeah, H (2015) Cross-border acquisitions and financial leverage of UK acquirers. Accounting Forum. ISSN 1467-6303

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Abstract

Based on a sample of 782 acquisitions by 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 when acquirers choose targets from developed countries, and also when the acquisitions are undertaken 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.

Item Type: Article
Uncontrolled Keywords: 15 Commerce, Management, Tourism And Services
Subjects: H Social Sciences > HF Commerce
H Social Sciences > HG Finance
Divisions: Liverpool Business School
Publisher: Elsevier
Date Deposited: 22 May 2015 14:36
Last Modified: 09 Oct 2016 23:50
DOI or Identification number: 10.1016/j.accfor.2015.03.002
URI: http://researchonline.ljmu.ac.uk/id/eprint/884

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