När marknaden får beskedet - En eventstudie av marknadsreaktion, betalningsmedel och institutionellt ägande vid företagsförvärv
(2026) FEKH89 20252Department of Business Administration
- Abstract
- Title: When the Market Receives the News – An Event Study of Market Reaction, Payment Method and Institutional Ownership in Mergers and Acquisitions
Seminar date: 15 January 2026
Course: FEKH89, Bachelor Thesis in Corporate Finance, Undergraduate Level, 15 credits
Authors: Nils Arvidsson, André Mellqvist & Emilian Rehnström
Advisor: Elias Bengtsson
Key words: Abnormal return, short-term market reaction, corporate acquisitions (M&A), method of payment, institutional ownership.
Research questions: Does the announcement of M&A affect the bidder´s abnormal return in the short run? Does the short-term market reaction differ depending on whether the acquisition is financed with cash or shares? Does the level of institutional... (More) - Title: When the Market Receives the News – An Event Study of Market Reaction, Payment Method and Institutional Ownership in Mergers and Acquisitions
Seminar date: 15 January 2026
Course: FEKH89, Bachelor Thesis in Corporate Finance, Undergraduate Level, 15 credits
Authors: Nils Arvidsson, André Mellqvist & Emilian Rehnström
Advisor: Elias Bengtsson
Key words: Abnormal return, short-term market reaction, corporate acquisitions (M&A), method of payment, institutional ownership.
Research questions: Does the announcement of M&A affect the bidder´s abnormal return in the short run? Does the short-term market reaction differ depending on whether the acquisition is financed with cash or shares? Does the level of institutional ownership affect the bidder´s abnormal return in the short run in connection with an acquisition?
Purpose: To examine bidder´s short-term market reaction to M&A announcements and to analyse how the method of payment and institutional ownership influence short-term CAR.
Methodology: The study is based on an event study to calculate CAR for bidders within an event window around the announcement date. T-tests are conducted in to ensure any potential relationships. A multiple linear regression analysis (OLS) is then conducted in which CAR is explained by the method of payment, institutional ownership, and control variables.
Theoretical perspectives: The study builds on the efficient market hypothesis, signalling theory, agency theory and risk theory, as well as prior empirical research on the market reactions to corporate acquisitions linked to the method of payment and institutional ownership.
Result: The study indicates a positive market reaction around acquisition announcements. Payment method shows no significant effect on CAR in the regression model. Institutional ownerships show a negative relationship with CAR.
Conclusions: The study shows that the market reacts to M&A announcements in the short run and that ownership structure is associated with variation in CAR, while the importance of the method of payment is less clear when other factors are considered. (Less) - Popular Abstract (Swedish)
- Examensarbetets titel: När marknaden får beskedet - En eventstudie av marknadsreaktion, betalningsmedel och institutionellt ägande vid företagsförvärv
Seminariedatum: 15 januari 2026
Ämne/kurs: FEKH89, Examensarbete i finansiering på kandidatnivå, 15 högskolepoäng
Författare: Nils Arvidsson, André Mellqvist & Emilian Rehnström
Handledare: Elias Bengtsson
Fem nyckelord: Abnormal avkastning, kortsiktig marknadsreaktion, företagsförvärv (M&A), betalningsmedel, institutionellt ägande.
Forskningsfrågor: Påverkar annonsering av ett företagsförvärv budgivarens abnormala avkastning på kort sikt? Skiljer sig den kortsiktiga marknadsreaktionen åt beroende på om förvärvet finansieras med kontanter eller aktier? Påverkar graden av... (More) - Examensarbetets titel: När marknaden får beskedet - En eventstudie av marknadsreaktion, betalningsmedel och institutionellt ägande vid företagsförvärv
Seminariedatum: 15 januari 2026
Ämne/kurs: FEKH89, Examensarbete i finansiering på kandidatnivå, 15 högskolepoäng
Författare: Nils Arvidsson, André Mellqvist & Emilian Rehnström
Handledare: Elias Bengtsson
Fem nyckelord: Abnormal avkastning, kortsiktig marknadsreaktion, företagsförvärv (M&A), betalningsmedel, institutionellt ägande.
Forskningsfrågor: Påverkar annonsering av ett företagsförvärv budgivarens abnormala avkastning på kort sikt? Skiljer sig den kortsiktiga marknadsreaktionen åt beroende på om förvärvet finansieras med kontanter eller aktier? Påverkar graden av institutionellt ägande budgivarens abnormala avkastning på kort sikt vid förvärv?
Syfte: Att undersöka budgivares kortsiktiga marknadsreaktion vid M&A-annonseringar, samt analysera betalningsmedel och institutionellt ägandes påverkan på CAR på kort sikt.
Metod: Studien tar sin utgångspunkt i en eventstudie för att beräkna CAR för budgivare i ett eventfönster runt annonseringsdatumet. T-tester genomförs i syfte att säkerställa eventuella samband. Vidare utförs en multipel linjär regressionsanalys (OLS) där CAR förklaras av betalningsmedel, institutionellt ägande och kontrollvariabler.
Teoretiska perspektiv: Studien bygger på den effektiva marknadshypotesen, signaleringsteorin, agentteorin och riskteorin, samt tidigare empirisk forskning om marknadsreaktioner vid företagsförvärv kopplat till betalningsmedel och institutionellt ägande.
Resultat: Studien indikerar en positiv marknadsreaktion kring annonsering av förvärv. Betalningsmedel uppvisar ingen signifikant effekt på CAR i regressionsmodellen. Institutionellt ägande påvisar ett negativt samband med CAR.
Slutsats: Studien påvisar att marknaden reagerar på M&A-annonseringar på kort sikt och att ägarstruktur samvarierar med variation i CAR, medan betalningsmedlets betydelse är mindre tydlig i beaktning av övriga faktorer. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9219313
- author
- Arvidsson, Nils ; Mellqvist, André and Rehnström, Emilian LU
- supervisor
- organization
- course
- FEKH89 20252
- year
- 2026
- type
- M2 - Bachelor Degree
- subject
- keywords
- Abnormal return, Short-term market reaction, Corporate acquisitions (M&A), Method of payment, Institutional ownership
- language
- Swedish
- id
- 9219313
- date added to LUP
- 2026-02-12 16:46:05
- date last changed
- 2026-02-12 16:46:05
@misc{9219313,
abstract = {{Title: When the Market Receives the News – An Event Study of Market Reaction, Payment Method and Institutional Ownership in Mergers and Acquisitions
Seminar date: 15 January 2026
Course: FEKH89, Bachelor Thesis in Corporate Finance, Undergraduate Level, 15 credits
Authors: Nils Arvidsson, André Mellqvist & Emilian Rehnström
Advisor: Elias Bengtsson
Key words: Abnormal return, short-term market reaction, corporate acquisitions (M&A), method of payment, institutional ownership.
Research questions: Does the announcement of M&A affect the bidder´s abnormal return in the short run? Does the short-term market reaction differ depending on whether the acquisition is financed with cash or shares? Does the level of institutional ownership affect the bidder´s abnormal return in the short run in connection with an acquisition?
Purpose: To examine bidder´s short-term market reaction to M&A announcements and to analyse how the method of payment and institutional ownership influence short-term CAR.
Methodology: The study is based on an event study to calculate CAR for bidders within an event window around the announcement date. T-tests are conducted in to ensure any potential relationships. A multiple linear regression analysis (OLS) is then conducted in which CAR is explained by the method of payment, institutional ownership, and control variables.
Theoretical perspectives: The study builds on the efficient market hypothesis, signalling theory, agency theory and risk theory, as well as prior empirical research on the market reactions to corporate acquisitions linked to the method of payment and institutional ownership.
Result: The study indicates a positive market reaction around acquisition announcements. Payment method shows no significant effect on CAR in the regression model. Institutional ownerships show a negative relationship with CAR.
Conclusions: The study shows that the market reacts to M&A announcements in the short run and that ownership structure is associated with variation in CAR, while the importance of the method of payment is less clear when other factors are considered.}},
author = {{Arvidsson, Nils and Mellqvist, André and Rehnström, Emilian}},
language = {{swe}},
note = {{Student Paper}},
title = {{När marknaden får beskedet - En eventstudie av marknadsreaktion, betalningsmedel och institutionellt ägande vid företagsförvärv}},
year = {{2026}},
}