Cross-border Mergers and Acquisitions in different legal environments

► Acquiring-firm shareholders positively value the M&A announcements. ► Cumulative Average Abnormal Return (CAAR), in (−1,+1), is 0.99% for the whole sample. ► The stronger (weaker) the legal and institutional environment of the acquirer firm country, the more positive (negative) the effect on acquiring-firm shareholders' valuation of M&As.