Acquisitions, Profitability, and Growth: A Study of Canadian Firms

Igor Semenenko, Junwook Yoo

Article

Large acquisitions in the United States by Canadian firms lower growth prospects and profitability of Canadian companies. Results are driven by post-acquisition performance of the largest Canadian industries, including oil & gas, mining and precious metals, which together account for almost 40 percent of Canadian firms with asset size above 100 million reported in Compustat research files. Cross-border acquisitions of firms in high tech industries do not improve performance of Canadian firms.

Keywords

Round Building

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