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Corporate Multinationality and Acquirer Returns

Henry, Agyei-Boapeah; Fosu, Samuel; Ntim, Collins G.


Agyei-Boapeah Henry

Samuel Fosu

Collins G. Ntim


This paper provides evidence on how corporate multinationality from the perspective of acquiring firms relates to M&A returns. Using multivariate regressions and a large dataset of over 6,000 M&As (both cross-border and domestic) by UK firms during 1987 to 2014, the paper finds multinationality to be associated with significantly higher short-run announcement returns and long-run operating performance. While the multinationality premium (higher M&A returns for multinationals) persists over time, it seems to be restricted to firms with superior resource/managerial capabilities and minimal agency problems. Finally, the multinationality premium appears to be driven by foreign acquisitions into advanced economies. The results are robust to correcting for sample selection bias and controlling for several firm and deal characteristics, as well as accounting for firm-, industry-, and year-fixed effects. Collectively, the findings imply that multinationality could be a source of value creation for acquiring firms, particularly in foreign acquisitions, which tend to be complex, and thereby, require superior managerial capabilities to succeed.


Henry, A., Fosu, S., & Ntim, C. G. (2020). Corporate Multinationality and Acquirer Returns. Abacus, 56(2), 230-267.

Journal Article Type Article
Acceptance Date Oct 4, 2018
Online Publication Date Jan 8, 2019
Publication Date 2020-06
Deposit Date Jul 1, 2021
Publicly Available Date Jul 6, 2021
Print ISSN 0001-3072
Electronic ISSN 1467-6281
Publisher Wiley
Peer Reviewed Peer Reviewed
Volume 56
Issue 2
Pages 230-267
Keywords Corporate multinationality; Geographic diversification; Multinational corporations; Firm capabilities; M&As; UK JEL classification : G14, G15, G34 2
Public URL
Publisher URL
Additional Information This is the peer reviewed version of the following article: Agyei-Boapeah, H., Fosu, S. and Ntim, C.G. (2020), Corporate Multinationality and Acquirer Returns. Abacus, 56: 230-267., which has been published in final form at This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions..


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