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Explaining the Performance of Swedish Mergers & Acquisitions: Follow the Money or the Stock Market?

Krieger, Gustav LU ; Andrae, Eleonor LU ; Bergström, Leonard LU and Friberg, Ebba LU (2015) FEKH89 20151
Department of Business Administration
Abstract
Title: Explaining the performance of Swedish mergers & acquisitions -
Follow the money or the stock market?
Seminar date: 2015-06-04
Course: FEKH89, Degree Project in Corporate Finance, Undergraduate
Level, 15 ECTS-Credits
Authors: Eleonor Andræ, Leonard Bergström, Ebba Friberg, Gustav Krieger
Advisor: Rikard Larsson
Key words: CAR, Pretax operating cash flow, Mergers, Sweden, Regression
analysis
Purpose: The purpose of this thesis is to investigate the relationship
between the market‟s reaction to a merger and the development of
operating perfromance during the subsequent years.
Methodology: This is a study conducted with a deductive approach and of
quantitative nature. The study uses regression analysis and
correlation... (More)
Title: Explaining the performance of Swedish mergers & acquisitions -
Follow the money or the stock market?
Seminar date: 2015-06-04
Course: FEKH89, Degree Project in Corporate Finance, Undergraduate
Level, 15 ECTS-Credits
Authors: Eleonor Andræ, Leonard Bergström, Ebba Friberg, Gustav Krieger
Advisor: Rikard Larsson
Key words: CAR, Pretax operating cash flow, Mergers, Sweden, Regression
analysis
Purpose: The purpose of this thesis is to investigate the relationship
between the market‟s reaction to a merger and the development of
operating perfromance during the subsequent years.
Methodology: This is a study conducted with a deductive approach and of
quantitative nature. The study uses regression analysis and
correlation analysis in order to analyze and compare secondary
data collected.
Theoretical Framework: The theory of this study is based on previous research in the area
of M&A‟s. The reference studies have been focusing on different
measurements of post-merger performance. Former studies
concentrate primarily on the market of North America and use a
different time frame.
Empirical Foundations: The empirical foundation of this study is information collected from
50 companies during the years of 2001-2007. CAR, pretax
operating cash flow, and 4 different key ratios have been tested on
these companies.
Conclusion: This thesis finds no statistical evidence that the stock market
efficiently predicts and accounts for the development of operating
performance following an M&A. However, firm size appears to
have an effect on the stock markets reaction to a merger
announcement and the revaluation connected. (Less)
Please use this url to cite or link to this publication:
author
Krieger, Gustav LU ; Andrae, Eleonor LU ; Bergström, Leonard LU and Friberg, Ebba LU
supervisor
organization
course
FEKH89 20151
year
type
M2 - Bachelor Degree
subject
language
English
id
7767315
date added to LUP
2015-09-15 16:24:20
date last changed
2015-09-15 16:24:20
@misc{7767315,
  abstract     = {{Title: Explaining the performance of Swedish mergers & acquisitions -
Follow the money or the stock market?
Seminar date: 2015-06-04
Course: FEKH89, Degree Project in Corporate Finance, Undergraduate
Level, 15 ECTS-Credits
Authors: Eleonor Andræ, Leonard Bergström, Ebba Friberg, Gustav Krieger
Advisor: Rikard Larsson
Key words: CAR, Pretax operating cash flow, Mergers, Sweden, Regression
analysis
Purpose: The purpose of this thesis is to investigate the relationship
between the market‟s reaction to a merger and the development of
operating perfromance during the subsequent years.
Methodology: This is a study conducted with a deductive approach and of
quantitative nature. The study uses regression analysis and
correlation analysis in order to analyze and compare secondary
data collected.
Theoretical Framework: The theory of this study is based on previous research in the area
of M&A‟s. The reference studies have been focusing on different
measurements of post-merger performance. Former studies
concentrate primarily on the market of North America and use a
different time frame.
Empirical Foundations: The empirical foundation of this study is information collected from
50 companies during the years of 2001-2007. CAR, pretax
operating cash flow, and 4 different key ratios have been tested on
these companies.
Conclusion: This thesis finds no statistical evidence that the stock market
efficiently predicts and accounts for the development of operating
performance following an M&A. However, firm size appears to
have an effect on the stock markets reaction to a merger
announcement and the revaluation connected.}},
  author       = {{Krieger, Gustav and Andrae, Eleonor and Bergström, Leonard and Friberg, Ebba}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Explaining the Performance of Swedish Mergers & Acquisitions: Follow the Money or the Stock Market?}},
  year         = {{2015}},
}