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M&A Performance Across the Business Cycles

Hemberg, Johan LU and Johansson, Erik (2012) BUSN89 20121
Department of Business Administration
Abstract
The purpose of this thesis is to test if the depth of business cycles, i.e. if the
acquisition is performed early or late within a cycle, affects performance.
The intention is to contribute to M&A research by using stock market data
and accounting data from selected companies to bring further light on postperformance research by adding the variable of business cycles. The authors
also wish to shed light on these issues by investigating whether acquisitions
undertaken in boom and bust periods differ in success rate.
This study is undertaken using a quantitative approach. The methodology
has been completed to fit the purpose of the thesis and the given time frame.
Two statistical tests, Student´s t-test and Wilcoxon Test,... (More)
The purpose of this thesis is to test if the depth of business cycles, i.e. if the
acquisition is performed early or late within a cycle, affects performance.
The intention is to contribute to M&A research by using stock market data
and accounting data from selected companies to bring further light on postperformance research by adding the variable of business cycles. The authors
also wish to shed light on these issues by investigating whether acquisitions
undertaken in boom and bust periods differ in success rate.
This study is undertaken using a quantitative approach. The methodology
has been completed to fit the purpose of the thesis and the given time frame.
Two statistical tests, Student´s t-test and Wilcoxon Test, have also been
performed in order to determine significance of the results
The findings of this thesis imply that the abnormal returns of M&As varies
across the business cycle. This suggests that top management at companies
could gain a lot if they pay more attention to the business cycle and when to
conduct M&As. The results of this thesis complement existing research on
M&A performance in business cycles, e.g. Bouwman et al. (2007) and
Pangarkar and Lie (2004), but it also adds to research by measuring
performance in terms of depth of each business cycle. (Less)
Please use this url to cite or link to this publication:
author
Hemberg, Johan LU and Johansson, Erik
supervisor
organization
alternative title
Best Timing of M&As at The Swedish Stock Marke
course
BUSN89 20121
year
type
H1 - Master's Degree (One Year)
subject
keywords
M&A, Business Cycles, Abnormal Returns, Event Study.
language
English
id
3242208
date added to LUP
2012-12-14 13:47:32
date last changed
2012-12-14 13:47:32
@misc{3242208,
  abstract     = {The purpose of this thesis is to test if the depth of business cycles, i.e. if the 
acquisition is performed early or late within a cycle, affects performance. 
The intention is to contribute to M&A research by using stock market data 
and accounting data from selected companies to bring further light on postperformance research by adding the variable of business cycles. The authors 
also wish to shed light on these issues by investigating whether acquisitions 
undertaken in boom and bust periods differ in success rate. 
This study is undertaken using a quantitative approach. The methodology 
has been completed to fit the purpose of the thesis and the given time frame. 
Two statistical tests, Student´s t-test and Wilcoxon Test, have also been
performed in order to determine significance of the results
The findings of this thesis imply that the abnormal returns of M&As varies 
across the business cycle. This suggests that top management at companies 
could gain a lot if they pay more attention to the business cycle and when to 
conduct M&As. The results of this thesis complement existing research on 
M&A performance in business cycles, e.g. Bouwman et al. (2007) and 
Pangarkar and Lie (2004), but it also adds to research by measuring 
performance in terms of depth of each business cycle.},
  author       = {Hemberg, Johan and Johansson, Erik},
  keyword      = {M&A,Business Cycles,Abnormal Returns,Event Study.},
  language     = {eng},
  note         = {Student Paper},
  title        = {M&A Performance Across the Business Cycles},
  year         = {2012},
}