From Decision to Outcome: Determinants and Post-M&A Performance in Swedish Public Firms
(2025) BUSN79 20251Department of Business Administration
- Abstract
- Purpose: This study aims to identify the firm-specific, industry, and macroeconomic factors that drive M&A activity among Swedish public companies, and to assess whether these acquisitions result in enhanced financial and operational performance in the subsequent years.
Methodology: The study uses binary logistic regression to examine how firms, industry, and macroeconomic characteristics influence the likelihood of M&A activity. Post-acquisition performance is assessed through propensity score matching and subsequent OLS regressions that track changes in profitability, revenue, and efficiency over a three-year timeframe.
Theoretical perspectives: The paper draws on agency theory, the resource-based view, and capital structure... (More) - Purpose: This study aims to identify the firm-specific, industry, and macroeconomic factors that drive M&A activity among Swedish public companies, and to assess whether these acquisitions result in enhanced financial and operational performance in the subsequent years.
Methodology: The study uses binary logistic regression to examine how firms, industry, and macroeconomic characteristics influence the likelihood of M&A activity. Post-acquisition performance is assessed through propensity score matching and subsequent OLS regressions that track changes in profitability, revenue, and efficiency over a three-year timeframe.
Theoretical perspectives: The paper draws on agency theory, the resource-based view, and capital structure theories to explain M&A behavior and guide the selection of financial, strategic, and ownership variables used to analyze acquisition likelihood and post-M&A performance.
Empirical foundation: The foundation of the study is a panel dataset of 1,019 Swedish public firms, including 554 acquirers and 465 non-acquirers, observed between 2015 and 2023. The dataset covers 11 sectors and combines firm-level financials with information on M&A activity.
Conclusion: The study finds that firm size, asset efficiency, and intangible intensity significantly influence M&A activity, while leverage acts as a limiting factor. Although M&A does not appear to improve profitability in the short term, acquiring firms show strong revenue growth and delayed improvements in operational margins, suggesting long-term strategic gains. Moreover, asset efficiency is found to decline following acquisitions. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9193162
- author
- Moilanen, Matias LU and Paldanius, Eetu LU
- supervisor
- organization
- course
- BUSN79 20251
- year
- 2025
- type
- H1 - Master's Degree (One Year)
- subject
- language
- English
- id
- 9193162
- date added to LUP
- 2025-06-26 15:09:54
- date last changed
- 2025-06-26 15:09:54
@misc{9193162,
abstract = {{Purpose: This study aims to identify the firm-specific, industry, and macroeconomic factors that drive M&A activity among Swedish public companies, and to assess whether these acquisitions result in enhanced financial and operational performance in the subsequent years.
Methodology: The study uses binary logistic regression to examine how firms, industry, and macroeconomic characteristics influence the likelihood of M&A activity. Post-acquisition performance is assessed through propensity score matching and subsequent OLS regressions that track changes in profitability, revenue, and efficiency over a three-year timeframe.
Theoretical perspectives: The paper draws on agency theory, the resource-based view, and capital structure theories to explain M&A behavior and guide the selection of financial, strategic, and ownership variables used to analyze acquisition likelihood and post-M&A performance.
Empirical foundation: The foundation of the study is a panel dataset of 1,019 Swedish public firms, including 554 acquirers and 465 non-acquirers, observed between 2015 and 2023. The dataset covers 11 sectors and combines firm-level financials with information on M&A activity.
Conclusion: The study finds that firm size, asset efficiency, and intangible intensity significantly influence M&A activity, while leverage acts as a limiting factor. Although M&A does not appear to improve profitability in the short term, acquiring firms show strong revenue growth and delayed improvements in operational margins, suggesting long-term strategic gains. Moreover, asset efficiency is found to decline following acquisitions.}},
author = {{Moilanen, Matias and Paldanius, Eetu}},
language = {{eng}},
note = {{Student Paper}},
title = {{From Decision to Outcome: Determinants and Post-M&A Performance in Swedish Public Firms}},
year = {{2025}},
}