Does learning by observing matter for M&As? International evidence from the insurance industry

• Autores: Quanxi Liang, Jianchun Miao, Donghui Li, Zhian Chen
• Localización: Revista española de financiación y contabilidad, ISSN 0210-2412, Vol. 50, Nº 2, 2021, págs. 162-186
• Idioma: inglés
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• Resumen

  • This paper examines the role of learning by observing in insurance mergers and acquisitions (M&As) by employing an international sample across 18 countries spanning the years 1990 to 2014. The empirical results support a view of semi-strong market efficiency:

    the long-run improvements in financial performance and risk profiles are significantly related to past M&As in the insurance industry.

    Moreover, we find evidence of more accurate stock market predictions of long-run financial performance and risk profiles if there are more recent insurance merger activities. This paper provides a new explanation for the controversy observed in the failure of insurance M&As to create value.