The value impact of venture capital acquisitions: an event study of technology start-up acquisitions in European emerging economies

OpenAlex İngilizce

Purpose This study aims to examine the impact of technology start-up acquisition announcements on the stock prices of acquiring companies in emerging European markets (namely, Turkey, Greece, Poland, Russia and Hungary). The study aims to assess how market development and economic context influence investor reactions. Design/methodology/approach We use a standard event study methodology to analyze 142 technology start-up acquisitions from 1999 to 2022. Cumulative average abnormal returns (CAAR) were calculated using daily stock price data from the Thomson Reuters-Eikon database, with separate analyses for each country and the full dataset. Additional analyses consider alternative event windows, non-parametric tests and data heterogeneity as well as a cross-sectional regression analysis to determine the factors explaining the CAAR. Findings We find varied market reactions across countries. Greece, Hungary and Poland exhibit negative CAAR, while Turkey and Russia show positive reactions pre- and post-announcement. Collective analysis shows an overall negative response to technology start-up acquisitions, suggesting that investors in emerging markets remain cautious about potential synergies or integration challenges. Originality/value This study offers new insights into how market development influences the value creation of technology start-up acquisitions in emerging countries. It highlights that markets with larger capitalizations, like Turkey and Russia, show more optimistic reactions, while markets with stronger institutional development, such as Greece, Hungary and Poland, exhibit mixed or negative responses. The findings provide implications for investors, firms and policymakers, with future research suggested for expanding to other regions and examining financial structures.