Advanced

Does the young European Internet Gambling Industry follow the Traditional rules of M&A theory? - A study of M&A drivers, size and affect

Tullberg, Tore and Maaz Al Amien, Rashid (2010)
Department of Business Administration
Abstract
Purpose: The purpose of our thesis is to test theories surrounding the drivers of M&A; of their occurrence, size and affect, and from that derive their applicability on the European
internet gambling industry. Methodology: This thesis uses deductive methods in which it tests theories with hypotheses by quantitative measures. Financial data have been gathered of companies in the internet
gambling industry between the years 2004 and 2010. Testing of independent variables followed this to explain two dependent variables; one by Nominal Logistic Regression analysis and the second through Multiple Regression analysis. T-Pair Test analysis is made on the independent variables themselves for search of mean-differences before and after... (More)
Purpose: The purpose of our thesis is to test theories surrounding the drivers of M&A; of their occurrence, size and affect, and from that derive their applicability on the European
internet gambling industry. Methodology: This thesis uses deductive methods in which it tests theories with hypotheses by quantitative measures. Financial data have been gathered of companies in the internet
gambling industry between the years 2004 and 2010. Testing of independent variables followed this to explain two dependent variables; one by Nominal Logistic Regression analysis and the second through Multiple Regression analysis. T-Pair Test analysis is made on the independent variables themselves for search of mean-differences before and after acquisitions. The three serves as the base for our empirical findings and analysis. Theoretical Perspective: This paper has covered the M&A theory deemed most relevant to our study. Focusing on theories surrounding drivers of M&A including size and affect together with theories that serves as an explanatory for our findings. This includes both literature and academic perspectives in published papers. Empirical Findings: The hypotheses were divided in sections of three and later tested for acceptance. Our results were somewhat inconclusive in finding evidence that supported the
chosen theories of M&A; occurrence, size and performance, and in the opposite in the wanted results of some hypotheses’ regressions. Conclusion: The European gambling industry is concluded in this paper as a unique industry based on its inconsistency in compliances with the stated theories of M&A activity. Excess
Cash prior to M&A increases its likelihood, while Debt and Return-on-Equity both had a negative effect on the size of M&A, were the main factors found supporting theory of M&A. (Less)
Please use this url to cite or link to this publication:
author
Tullberg, Tore and Maaz Al Amien, Rashid
supervisor
organization
year
type
H1 - Master's Degree (One Year)
subject
keywords
Mergers and Acquisitions (M&A), Nominal Logistic Regression, M&A Drivers, internet gambling industry, Management of enterprises, Företagsledning, management
language
Swedish
id
1625309
date added to LUP
2010-06-07 00:00:00
date last changed
2012-04-02 18:07:29
@misc{1625309,
  abstract     = {Purpose: The purpose of our thesis is to test theories surrounding the drivers of M&A; of their occurrence, size and affect, and from that derive their applicability on the European
internet gambling industry. Methodology: This thesis uses deductive methods in which it tests theories with hypotheses by quantitative measures. Financial data have been gathered of companies in the internet
gambling industry between the years 2004 and 2010. Testing of independent variables followed this to explain two dependent variables; one by Nominal Logistic Regression analysis and the second through Multiple Regression analysis. T-Pair Test analysis is made on the independent variables themselves for search of mean-differences before and after acquisitions. The three serves as the base for our empirical findings and analysis. Theoretical Perspective: This paper has covered the M&A theory deemed most relevant to our study. Focusing on theories surrounding drivers of M&A including size and affect together with theories that serves as an explanatory for our findings. This includes both literature and academic perspectives in published papers. Empirical Findings: The hypotheses were divided in sections of three and later tested for acceptance. Our results were somewhat inconclusive in finding evidence that supported the
chosen theories of M&A; occurrence, size and performance, and in the opposite in the wanted results of some hypotheses’ regressions. Conclusion: The European gambling industry is concluded in this paper as a unique industry based on its inconsistency in compliances with the stated theories of M&A activity. Excess
Cash prior to M&A increases its likelihood, while Debt and Return-on-Equity both had a negative effect on the size of M&A, were the main factors found supporting theory of M&A.},
  author       = {Tullberg, Tore and Maaz Al Amien, Rashid},
  keyword      = {Mergers and Acquisitions (M&A),Nominal Logistic Regression,M&A Drivers,internet gambling industry,Management of enterprises,Företagsledning, management},
  language     = {swe},
  note         = {Student Paper},
  title        = {Does the young European Internet Gambling Industry follow the Traditional rules of M&A theory? - A study of M&A drivers, size and affect},
  year         = {2010},
}