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Cross-Border M&As by Swedish Firms

Izgi, Filip LU (2013) NEKN02 20131
Department of Economics
Abstract
Title: Cross-Border M&As by Swedish Firms
Author: Filip Izgi
Supervisor: Ola Bengtsson
Purpose: The primary purpose of this study is to examine acquiring firm’s abnormal behavior of cross-border and domestic M&A announcements, as a factor of cultural differences. The secondary purpose is to investigate if abnormal behavior is influenced by pre-determined control-variables: method of payment and industry.
Method: The study was conducted through a short-term Event Study. I investigated a total of 86 diversified, domestic and cross-border, acquisition announcements between the years 2000 – 2012.
Conclusion: The study demonstrates that M&A announcements have different effects on stock performance depending on cultural differences, method... (More)
Title: Cross-Border M&As by Swedish Firms
Author: Filip Izgi
Supervisor: Ola Bengtsson
Purpose: The primary purpose of this study is to examine acquiring firm’s abnormal behavior of cross-border and domestic M&A announcements, as a factor of cultural differences. The secondary purpose is to investigate if abnormal behavior is influenced by pre-determined control-variables: method of payment and industry.
Method: The study was conducted through a short-term Event Study. I investigated a total of 86 diversified, domestic and cross-border, acquisition announcements between the years 2000 – 2012.
Conclusion: The study demonstrates that M&A announcements have different effects on stock performance depending on cultural differences, method of payment and the industry the corporations operate in. The result aren’t statistically significant but they are highly consistent with theories such as the pecking order theory, Hofstede’s cultural dimensions and the market efficiency hypothesis were domestic acquisitions’ performs better than cross-border acquisitions, cash acquisitions performs better than stock acquisitions and the industry shows a clear indication of inefficient markets. (Less)
Please use this url to cite or link to this publication:
author
Izgi, Filip LU
supervisor
organization
alternative title
Focus on Cultural Differences, Method of Payment and Industry
course
NEKN02 20131
year
type
H1 - Master's Degree (One Year)
subject
keywords
Event study Culture Method of payment Industry sector Announcement Acquisition
language
English
id
3801993
date added to LUP
2013-06-12 14:38:27
date last changed
2013-06-12 14:38:27
@misc{3801993,
  abstract     = {Title: Cross-Border M&As by Swedish Firms
Author: Filip Izgi
Supervisor: Ola Bengtsson
Purpose: The primary purpose of this study is to examine acquiring firm’s abnormal behavior of cross-border and domestic M&A announcements, as a factor of cultural differences. The secondary purpose is to investigate if abnormal behavior is influenced by pre-determined control-variables: method of payment and industry.
Method: The study was conducted through a short-term Event Study. I investigated a total of 86 diversified, domestic and cross-border, acquisition announcements between the years 2000 – 2012.
Conclusion: The study demonstrates that M&A announcements have different effects on stock performance depending on cultural differences, method of payment and the industry the corporations operate in. The result aren’t statistically significant but they are highly consistent with theories such as the pecking order theory, Hofstede’s cultural dimensions and the market efficiency hypothesis were domestic acquisitions’ performs better than cross-border acquisitions, cash acquisitions performs better than stock acquisitions and the industry shows a clear indication of inefficient markets.},
  author       = {Izgi, Filip},
  keyword      = {Event study Culture Method of payment Industry sector Announcement Acquisition},
  language     = {eng},
  note         = {Student Paper},
  title        = {Cross-Border M&As by Swedish Firms},
  year         = {2013},
}