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Swedish Acquisitions With A Long-Term Perspective. Comparing the Performance of Single and Serial Acquirers.

Hulmi, Fanny Aleksandra LU and Lovato, Alessia LU (2023) NEKN02 20231
Department of Economics
Abstract
This study examines the long-term post-acquisition performance of acquirers, both serial and single, in Sweden within a time frame spanning from 2000 to 2022. The post-acquisition performance is evaluated using a long-term event study, employing the Buy-and-Hold Abnormal Returns (BHAR) methodology. The results of the 1-year BHAR analysis indicate that, on average, Swedish acquirers exhibit abnormal returns of -20.22%, indicating a trend of value destruction for acquiring firms’ shareholders in the long term. The findings of the 6-month BHAR analysis further confirm the presence of negative abnormal returns. Additionally, the study does not yield substantial evidence to establish the outperformance of either single or serial acquirers in... (More)
This study examines the long-term post-acquisition performance of acquirers, both serial and single, in Sweden within a time frame spanning from 2000 to 2022. The post-acquisition performance is evaluated using a long-term event study, employing the Buy-and-Hold Abnormal Returns (BHAR) methodology. The results of the 1-year BHAR analysis indicate that, on average, Swedish acquirers exhibit abnormal returns of -20.22%, indicating a trend of value destruction for acquiring firms’ shareholders in the long term. The findings of the 6-month BHAR analysis further confirm the presence of negative abnormal returns. Additionally, the study does not yield substantial evidence to establish the outperformance of either single or serial acquirers in the long run. Regression analysis incorporating deal-specific control variables does not uncover statistically significant results. (Less)
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author
Hulmi, Fanny Aleksandra LU and Lovato, Alessia LU
supervisor
organization
course
NEKN02 20231
year
type
H1 - Master's Degree (One Year)
subject
keywords
M&A, acquisitions, serial acquirers, long-term performance, BHAR.
language
English
id
9122085
date added to LUP
2023-11-24 08:56:57
date last changed
2023-11-24 08:56:57
@misc{9122085,
  abstract     = {{This study examines the long-term post-acquisition performance of acquirers, both serial and single, in Sweden within a time frame spanning from 2000 to 2022. The post-acquisition performance is evaluated using a long-term event study, employing the Buy-and-Hold Abnormal Returns (BHAR) methodology. The results of the 1-year BHAR analysis indicate that, on average, Swedish acquirers exhibit abnormal returns of -20.22%, indicating a trend of value destruction for acquiring firms’ shareholders in the long term. The findings of the 6-month BHAR analysis further confirm the presence of negative abnormal returns. Additionally, the study does not yield substantial evidence to establish the outperformance of either single or serial acquirers in the long run. Regression analysis incorporating deal-specific control variables does not uncover statistically significant results.}},
  author       = {{Hulmi, Fanny Aleksandra and Lovato, Alessia}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Swedish Acquisitions With A Long-Term Perspective. Comparing the Performance of Single and Serial Acquirers.}},
  year         = {{2023}},
}