Explaining the Performance of Swedish Mergers & Acquisitions: Follow the Money or the Stock Market?
(2015) FEKH89 20151Department of Business Administration
- Abstract
- Title: Explaining the performance of Swedish mergers & acquisitions -
Follow the money or the stock market?
Seminar date: 2015-06-04
Course: FEKH89, Degree Project in Corporate Finance, Undergraduate
Level, 15 ECTS-Credits
Authors: Eleonor Andræ, Leonard Bergström, Ebba Friberg, Gustav Krieger
Advisor: Rikard Larsson
Key words: CAR, Pretax operating cash flow, Mergers, Sweden, Regression
analysis
Purpose: The purpose of this thesis is to investigate the relationship
between the market‟s reaction to a merger and the development of
operating perfromance during the subsequent years.
Methodology: This is a study conducted with a deductive approach and of
quantitative nature. The study uses regression analysis and
correlation... (More) - Title: Explaining the performance of Swedish mergers & acquisitions -
Follow the money or the stock market?
Seminar date: 2015-06-04
Course: FEKH89, Degree Project in Corporate Finance, Undergraduate
Level, 15 ECTS-Credits
Authors: Eleonor Andræ, Leonard Bergström, Ebba Friberg, Gustav Krieger
Advisor: Rikard Larsson
Key words: CAR, Pretax operating cash flow, Mergers, Sweden, Regression
analysis
Purpose: The purpose of this thesis is to investigate the relationship
between the market‟s reaction to a merger and the development of
operating perfromance during the subsequent years.
Methodology: This is a study conducted with a deductive approach and of
quantitative nature. The study uses regression analysis and
correlation analysis in order to analyze and compare secondary
data collected.
Theoretical Framework: The theory of this study is based on previous research in the area
of M&A‟s. The reference studies have been focusing on different
measurements of post-merger performance. Former studies
concentrate primarily on the market of North America and use a
different time frame.
Empirical Foundations: The empirical foundation of this study is information collected from
50 companies during the years of 2001-2007. CAR, pretax
operating cash flow, and 4 different key ratios have been tested on
these companies.
Conclusion: This thesis finds no statistical evidence that the stock market
efficiently predicts and accounts for the development of operating
performance following an M&A. However, firm size appears to
have an effect on the stock markets reaction to a merger
announcement and the revaluation connected. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/7767315
- author
- Krieger, Gustav LU ; Andrae, Eleonor LU ; Bergström, Leonard LU and Friberg, Ebba LU
- supervisor
- organization
- course
- FEKH89 20151
- year
- 2015
- type
- M2 - Bachelor Degree
- subject
- language
- English
- id
- 7767315
- date added to LUP
- 2015-09-15 16:24:20
- date last changed
- 2015-09-15 16:24:20
@misc{7767315, abstract = {{Title: Explaining the performance of Swedish mergers & acquisitions - Follow the money or the stock market? Seminar date: 2015-06-04 Course: FEKH89, Degree Project in Corporate Finance, Undergraduate Level, 15 ECTS-Credits Authors: Eleonor Andræ, Leonard Bergström, Ebba Friberg, Gustav Krieger Advisor: Rikard Larsson Key words: CAR, Pretax operating cash flow, Mergers, Sweden, Regression analysis Purpose: The purpose of this thesis is to investigate the relationship between the market‟s reaction to a merger and the development of operating perfromance during the subsequent years. Methodology: This is a study conducted with a deductive approach and of quantitative nature. The study uses regression analysis and correlation analysis in order to analyze and compare secondary data collected. Theoretical Framework: The theory of this study is based on previous research in the area of M&A‟s. The reference studies have been focusing on different measurements of post-merger performance. Former studies concentrate primarily on the market of North America and use a different time frame. Empirical Foundations: The empirical foundation of this study is information collected from 50 companies during the years of 2001-2007. CAR, pretax operating cash flow, and 4 different key ratios have been tested on these companies. Conclusion: This thesis finds no statistical evidence that the stock market efficiently predicts and accounts for the development of operating performance following an M&A. However, firm size appears to have an effect on the stock markets reaction to a merger announcement and the revaluation connected.}}, author = {{Krieger, Gustav and Andrae, Eleonor and Bergström, Leonard and Friberg, Ebba}}, language = {{eng}}, note = {{Student Paper}}, title = {{Explaining the Performance of Swedish Mergers & Acquisitions: Follow the Money or the Stock Market?}}, year = {{2015}}, }