The Value of Acquiring: An Event Study on Shareholder Value for Defence Sector M&A's
(2014) NEKN02 20141Department of Economics
- Abstract
- The purpose of this study is to examine whether an acquiring firm that operates as a contractor within the defence sector can expect to
generate shareholder value from a merger and acquisition with a fellow defence sector competitor. Having selected thirty acquiring defence firms an event study utilizing the market model is performed to obtain the abnormal returns generated from a merger and acquisition. To account for estimation problems associated with financial data, and to provide accurate and robust results, the GARCH and EGARCH model are also utilized alongside a basic OLS estimation. The results indicate a positive shareholder value creation for acquiring defence sector firms.
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/4461690
- author
- Sheppard, Jonathan LU
- supervisor
- organization
- course
- NEKN02 20141
- year
- 2014
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Event Study, GARCH, EGARCH, the market model, defence
- language
- English
- id
- 4461690
- date added to LUP
- 2014-06-16 22:38:47
- date last changed
- 2014-06-16 22:38:47
@misc{4461690, abstract = {{The purpose of this study is to examine whether an acquiring firm that operates as a contractor within the defence sector can expect to generate shareholder value from a merger and acquisition with a fellow defence sector competitor. Having selected thirty acquiring defence firms an event study utilizing the market model is performed to obtain the abnormal returns generated from a merger and acquisition. To account for estimation problems associated with financial data, and to provide accurate and robust results, the GARCH and EGARCH model are also utilized alongside a basic OLS estimation. The results indicate a positive shareholder value creation for acquiring defence sector firms.}}, author = {{Sheppard, Jonathan}}, language = {{eng}}, note = {{Student Paper}}, title = {{The Value of Acquiring: An Event Study on Shareholder Value for Defence Sector M&A's}}, year = {{2014}}, }