Cross-border acquisitions and financial leverage of UK acquirers
Year: 2015
Type: article
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.
Source: Accounting Forum
Author: Henry Agyei-Boapeah
Institution: Liverpool John Moores University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2018400008