Learning in serial mergers: Evidence from a global sample

Do frequent acquirers learn from their experience in serial mergers? A recent stream of literature has proposed that the generally observed declining investor response (cumulative abnormal returns) to successive acquisitions by may be evidence learning, rather than result commonly attributed causes such as managerial hubris or empire building. We examine learning hypothesis on a global scale, using sample 13,326 publicly listed acquiring firms representing 72 nations conducting 27,305 over period 1984–2014. Our results provide institutional-based differences acquirer scale valuation private targets. In contrast, we find takeovers public targets, especially United States, and other competitive takeover markets, where persistent, significant losses acquisitions, while targets continue reap gains throughout acquisition sequence.