Abstract

ABSTRACT This paper aims at shedding further light on the controversial impact of M&As on the value creation perceived by investors, as the short-term market performance of the firms involved. 17 event studies are examined by following a meta-analytical procedure. The unit of analysis is originally assumed as the event window within each study, yielding a total sample of 191 observations and 17,007 deals. Separate analyses are run for bidders, targets and combined entities. Our findings highlight the insensitiveness of bidders to M&As" announcement, in line with existing theory. Interestingly, the choice of the benchmark in the market model, the geographical scope and the event window position prove to be significant moderators: Italian M&As are less profitable than European ones, and preannouncement rumours significantly alter the overall performance.