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Merger waves: the effect on post-merger corporate Pperformance

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Bibliographic Details
Summary:The research offers a thorough analysis of the influence of historical merger waves on post merger corporate performance. Through the application of statistical tests and regressions, I show that mergers and acquisitions initiated during merger waves are associated with higher short-term abnormal stock returns and lower long-term abnormal stock returns. In contrast to existing research, I use the Fama–French three-factor model to measure the cumulative abnormal stock performance of acquirers for two-day, two-year, and three-year periods following the acquisition.
Main Authors:Ivackovic, Sara
Subject:Merger & acquisitions M&A Merger waves Corporate performance Long-Tterm abnormal returns Short-term abnormal returns Value Ccreation Off-wave On-wave Wealth effect
Year:2023
Country:Portugal
Document type:master thesis
Access type:open access
Associated institution:Universidade Nova de Lisboa
Language:English
Origin:Repositório Institucional da UNL
Description
Summary:The research offers a thorough analysis of the influence of historical merger waves on post merger corporate performance. Through the application of statistical tests and regressions, I show that mergers and acquisitions initiated during merger waves are associated with higher short-term abnormal stock returns and lower long-term abnormal stock returns. In contrast to existing research, I use the Fama–French three-factor model to measure the cumulative abnormal stock performance of acquirers for two-day, two-year, and three-year periods following the acquisition.