This study analyses the cumulative abnormal return (CAR) to Swedish and German bidders and the
impact of method of payment. Cash and Stock as means of financing have been discussed widely in
the last decades. More recently the contingent payment form earnout has come to focus of
research and will be further investigated in this study. The study involves a sample of 927
transactions of which 346 bids are made by German and 581 bids are made by Swedish acquirers.
Moreover the sample compromises 24 German and 49 Swedish earnout deals. The sample period is
chosen from 01 01 1986 to 31 12 2012 whereby a German or Swedish company acquires a domestic or
foreign target of any listing status.
