Document Type

Article

Publication Date

1-1-2013

Abstract

This study reports how country risk and macroeconomic conditions influence the wealth gains of U.S. financial firms involved in international mergers and takeovers. The findings suggest that U.S. financials experience weakly significant wealth gains around announcement date. The wealth gains are significant for takeovers in Latin America. There are also differences in wealth gains of subsector affiliations of financial firms. While banks experiencing wealth loss, both insurance and investment services firms having significant wealth gains. The country risk, including economic, political, and financial risk ratings, help to explain the wealth gains to financial bidders.

Comments

Published in The International Journal of Business and Finance Research 7, no. 1 (2013): 17-29.

Publication Title

The International Journal of Business and Finance Research

ISSN

1931-0269

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