How do cross-border M&A transactions in the Nordic countries impact acquiring firms’ performance, both in the short- and long-term?

Abstract

This study investigates the impact of cross-border M&A transactions on the performance of acquiring firms in the Nordic countries from 2011 to 2020. Using the classical event study methodology, the findings indicate significant positive short term returns, suggesting value creation for acquirers. The method of payment, particularly stock transactions, is the only significant factor influencing short-term returns. Long-term analysis shows marginal positive effects in the first year and marginal negative effects in the following years, but these results are insignificant. Industry relatedness and deal value positively impact firm performance.