The research, co-authored by George Alexandridis from the ICMA Centre documents that Mergers and Acquisitions (M&As) can create value for shareholders of acquiring firms beyond the most competitive M&A markets, such as the UK and US, where existing research has so far focused. The study establishes a link between the degree of competition in the market for corporate control and the premia paid in M&As around the world and gains to acquiring firm shareholders and therefore significantly contributes to existing knowledge in the area of Corporate Finance.

The research received the ?Best paper award in international finance' for 2009 at the Southwestern Finance Association conference in the US and has been presented at the 2010 Midwest Finance Association conference, the 2009 Southern Finance Association conference, the 2008 European Financial Management Association conference and the 2008 European Finance Association conference.

Dr George Alexandridis, Lecturer in Finance at the ICMA Centre said:

"The evidence we find deviates from conventional knowledge and is particularly compelling. In the past, many other studies, including some of our own, document that M&A deals involving listed targets destroy value for shareholders of acquiring firms. This research shows that this is likely to occur due to the more intense competition for listed targets within the largest M&A markets where we have been so far focused. We establish that the premium paid in acquisitions around the world increases with the degree of competition in the market for corporate control and that the gains that shareholders experience decrease with competition. As a result, M&As beyond the most competitive markets involve on average lower premia and can be more promising for acquiring firm shareholders."

The research paper is co-authored with Dr Dimitris Petmezas from Surrey School of Management and Prof Nickolaos Travlos, the Kitty Kiriakopoulos Chair in Finance and Dean of ALBA Business School.