Hit or miss? - Do acquisitions create value for the acquiring company’s shareholders? A long-term event study on acquisitions performed by Swedish IT companies.
(2017) NEKN02 20171Department of Economics
- Abstract
- In this paper, we investigate the long-term post-event stock return performance of companies operating in the IT sector and listed on NASDAQ Stockholm by using 78 mergers and acquisitions deals performed in the 2009 – 2013 period. We apply the event study methodology, focusing on the buy-and-hold abnormal returns approach. Stock return performance is analyzed in comparison to the Swedish general market index, as well as the Swedish technology index, and a set of control firms. The study finds different results depending on the method used; however, the only statistically significant result suggests that acquisitions destroy value for the acquiring company’s shareholders, which is in line with the majority of previous research.
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8913867
- author
- Malpezzi, Nicole LU and Martimo, Eriika
- supervisor
- organization
- course
- NEKN02 20171
- year
- 2017
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- mergers and acquisitions, long-term performance, event study, buy-and-hold abnormal returns
- language
- English
- id
- 8913867
- date added to LUP
- 2017-06-13 15:18:31
- date last changed
- 2017-06-13 15:18:31
@misc{8913867, abstract = {{In this paper, we investigate the long-term post-event stock return performance of companies operating in the IT sector and listed on NASDAQ Stockholm by using 78 mergers and acquisitions deals performed in the 2009 – 2013 period. We apply the event study methodology, focusing on the buy-and-hold abnormal returns approach. Stock return performance is analyzed in comparison to the Swedish general market index, as well as the Swedish technology index, and a set of control firms. The study finds different results depending on the method used; however, the only statistically significant result suggests that acquisitions destroy value for the acquiring company’s shareholders, which is in line with the majority of previous research.}}, author = {{Malpezzi, Nicole and Martimo, Eriika}}, language = {{eng}}, note = {{Student Paper}}, title = {{Hit or miss? - Do acquisitions create value for the acquiring company’s shareholders? A long-term event study on acquisitions performed by Swedish IT companies.}}, year = {{2017}}, }