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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.

Malpezzi, Nicole LU and Martimo, Eriika (2017) NEKN02 20171
Department 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.
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author
Malpezzi, Nicole LU and Martimo, Eriika
supervisor
organization
course
NEKN02 20171
year
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},
  keyword      = {mergers and acquisitions,long-term performance,event study,buy-and-hold abnormal returns},
  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},
}