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Single Sourcing Financing and Advice in M&A. An Event Study of Selected Non-Financial Companies Listed on Nasdaq Stockholm

Abasi-Okoko, Mercy LU and Rudolfsson, Adam LU (2021) NEKN02 20211
Department of Economics
Abstract
This thesis is done in collaboration with Nordea Corporate Finance. It was borne out of the need to examine the effect single sourcing acquisition deals has on value creation for acquiring shareholders. A short-term event study methodology with varying event windows was employed to empirically test this effect. The sample is made up of 69 M&A deals involving non-financial firms listed on Nasdaq Stockholm between 2000 and 2020. To measure if single sourced deals created more value than deals that were not, the study focuses on abnormal returns following the announcement of an acquisition. The results suggest that, contrary to general findings, mergers and acquisitions created value, in terms of abnormal returns, for the shareholders of the... (More)
This thesis is done in collaboration with Nordea Corporate Finance. It was borne out of the need to examine the effect single sourcing acquisition deals has on value creation for acquiring shareholders. A short-term event study methodology with varying event windows was employed to empirically test this effect. The sample is made up of 69 M&A deals involving non-financial firms listed on Nasdaq Stockholm between 2000 and 2020. To measure if single sourced deals created more value than deals that were not, the study focuses on abnormal returns following the announcement of an acquisition. The results suggest that, contrary to general findings, mergers and acquisitions created value, in terms of abnormal returns, for the shareholders of the observed acquiring firms. However, outcomes from the cross-sectional regressions fail to provide sufficient evidence to support the notion that single sourced deals influence the creation of more value for acquiring shareholders than multiple sourced deals. (Less)
Please use this url to cite or link to this publication:
author
Abasi-Okoko, Mercy LU and Rudolfsson, Adam LU
supervisor
organization
course
NEKN02 20211
year
type
H1 - Master's Degree (One Year)
subject
keywords
Single Sourcing M&A Value Creation Event Study
language
English
id
9052645
date added to LUP
2021-10-26 08:15:51
date last changed
2021-10-26 08:15:51
@misc{9052645,
  abstract     = {{This thesis is done in collaboration with Nordea Corporate Finance. It was borne out of the need to examine the effect single sourcing acquisition deals has on value creation for acquiring shareholders. A short-term event study methodology with varying event windows was employed to empirically test this effect. The sample is made up of 69 M&A deals involving non-financial firms listed on Nasdaq Stockholm between 2000 and 2020. To measure if single sourced deals created more value than deals that were not, the study focuses on abnormal returns following the announcement of an acquisition. The results suggest that, contrary to general findings, mergers and acquisitions created value, in terms of abnormal returns, for the shareholders of the observed acquiring firms. However, outcomes from the cross-sectional regressions fail to provide sufficient evidence to support the notion that single sourced deals influence the creation of more value for acquiring shareholders than multiple sourced deals.}},
  author       = {{Abasi-Okoko, Mercy and Rudolfsson, Adam}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Single Sourcing Financing and Advice in M&A. An Event Study of Selected Non-Financial Companies Listed on Nasdaq Stockholm}},
  year         = {{2021}},
}