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The Value of Acquiring: An Event Study on Shareholder Value for Defence Sector M&A's

Sheppard, Jonathan LU (2014) NEKN02 20141
Department 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.
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author
Sheppard, Jonathan LU
supervisor
organization
course
NEKN02 20141
year
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}},
}