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The effects of tender offers on target firms’ market value: case Sweden

Wolkesson Persson, Johan LU and Ekholm , Daniel (2011) NEKM01 20102
Department of Economics
Abstract (Swedish)
Purpose: Investigate to what extent tender offers have created value for
shareholders of target firms on the Swedish stock market and if
there are any relationship between specific variables and the
targets’ abnormal returns.

Methodology: The event study methodology and cross sectional regression
analysis.
Theoretical perspectives: The efficient market hypothesis is the starting point in our thesis followed by theory concerning determinants of abnormal returns for target firms.
Empirical foundation: Tender offers during 1999-2010 on Swedish public companies.

Conclusions: We find that target shareholders gain approximately 15 percent
abnormal returns around the days of the announcement. Further,
we find that the two of the... (More)
Purpose: Investigate to what extent tender offers have created value for
shareholders of target firms on the Swedish stock market and if
there are any relationship between specific variables and the
targets’ abnormal returns.

Methodology: The event study methodology and cross sectional regression
analysis.
Theoretical perspectives: The efficient market hypothesis is the starting point in our thesis followed by theory concerning determinants of abnormal returns for target firms.
Empirical foundation: Tender offers during 1999-2010 on Swedish public companies.

Conclusions: We find that target shareholders gain approximately 15 percent
abnormal returns around the days of the announcement. Further,
we find that the two of the variables, Tobin’s Q and stock price
run-up, significantly affect the target announcement return. (Less)
Please use this url to cite or link to this publication:
author
Wolkesson Persson, Johan LU and Ekholm , Daniel
supervisor
organization
course
NEKM01 20102
year
type
H1 - Master's Degree (One Year)
subject
keywords
Cumulative Average Abnormal Returns (CAAR), Tender Offers, Cumulative Abnormal Return (CAR), Event Study, Regression Analysis, Market Value and Target Firms.
language
English
id
1858635
date added to LUP
2011-03-25 08:21:08
date last changed
2011-03-25 08:21:08
@misc{1858635,
  abstract     = {Purpose: Investigate to what extent tender offers have created value for
shareholders of target firms on the Swedish stock market and if
there are any relationship between specific variables and the
targets’ abnormal returns.

Methodology: The event study methodology and cross sectional regression
analysis.
Theoretical perspectives: The efficient market hypothesis is the starting point in our thesis followed by theory concerning determinants of abnormal returns for target firms.
Empirical foundation: Tender offers during 1999-2010 on Swedish public companies.

Conclusions: We find that target shareholders gain approximately 15 percent
abnormal returns around the days of the announcement. Further,
we find that the two of the variables, Tobin’s Q and stock price
run-up, significantly affect the target announcement return.},
  author       = {Wolkesson Persson, Johan and Ekholm , Daniel},
  keyword      = {Cumulative Average Abnormal Returns (CAAR),Tender Offers,Cumulative Abnormal Return (CAR),Event Study,Regression
Analysis,Market Value and Target Firms.},
  language     = {eng},
  note         = {Student Paper},
  title        = {The effects of tender offers on target firms’ market value: case Sweden},
  year         = {2011},
}