I examine the market reaction to merger announcements and the long-term post-merger stock price performance of newly merged firms. For a sample of 484 acquiring firms completing mergers between 1993 and 2000, the average value-weighted abnormal announcement date return (market-adjusted) is a statistically significant -1.02%. On average, this reaction is more negative for firms with "good governance." Specifically, a governance index comprised of three governance variables is significantly negative in a multivariate regression of announcement date abnormal returns. Comp is the percentage of CEO salary consisting of equity incentives (including stock options and restricted stock grants), InsideOwn is the percentage of the firm owned by officers and directors, and InstOwn is the percentage of the firm owned by large outside block shareholders. Value-weighted calendar-time portfolios consisting of the full sample of acquirers exhibit significant abnormal returns of 9.12%, 33.84% and 55.8% for the 12, 36 and 60 months following the merger, respectively. This overperformance is limited to the value-weighted portfolios. There is calendar-time evidence of abnormal performance for some subsamples on a risk adjusted basis. However, when compared to a control group, abnormal performance is limited to large glamour acquirers on a 12-month horizon, large cash acquirers on a 36 and 60-month horizon, and small focusing acquirers on a 60-month horizon. Multivariate analysis of long-run returns reveals that use of equity and corporate diversification are associated with lower post-merger performance. With regard to governance and long-run stock returns, there is also evidence that suggests higher levels of incentive compensation for CEOs is associated with more successful merger transactions for long-term investors.

I examine the market reaction to merger announcements and the long-term post-merger stock price performance of newly merged firms. For a sample of 484 acquiring firms completing mergers between 1993 and 2000, the average value-weighted abnormal announcement date return (market-adjusted) is a statistically significant -1.02%. On average, this reaction is more negative for firms with "good governance." Specifically, a governance index comprised of three governance variables is significantly negative in a multivariate regression of announcement date abnormal returns. Comp is the percentage of CEO salary consisting of equity incentives (including stock options and restricted stock grants), InsideOwn is the percentage of the firm owned by officers and directors, and InstOwn is the percentage of the firm owned by large outside block shareholders. Value-weighted calendar-time portfolios consisting of the full sample of acquirers exhibit significant abnormal returns of 9.12%, 33.84% and 55.8% for the 12, 36 and 60 months following the merger, respectively. This overperformance is limited to the value-weighted portfolios. There is calendar-time evidence of abnormal performance for some subsamples on a risk adjusted basis. However, when compared to a control group, abnormal performance is limited to large glamour acquirers on a 12-month horizon, large cash acquirers on a 36 and 60-month horizon, and small focusing acquirers on a 60-month horizon. Multivariate analysis of long-run returns reveals that use of equity and corporate diversification are associated with lower post-merger performance. With regard to governance and long-run stock returns, there is also evidence that suggests higher levels of incentive compensation for CEOs is associated with more successful merger transactions for long-term investors.

This thesis examines the impact of announcements of syndicated loans on the share prices of borrowing firms. I use a sample of 5,465 loan observations reported in the International Financing Review Platinum database to study this impact. Event study methodology is used. My overall results show significantly positive wealth effects on the borrowing firms. However, when I partition my data set into revolving credit agreements, term loans and hybrid loans, I find that the results are driven primarily by revolving credit agreements. I also observe that the size of the event window plays an important role in identifying the wealth effects for the borrowers. A five-day event window (-2, +2) shows share price response to revolving credit announcements to be significantly positive. A three-day event window (-1, +1) reveals that announcements are statistically positive for revolving credit agreements and statistically negative for term loan announcements. My results are consistent with previous studies in this area. I also distinguish between financial press announcements and information provider (IFR) announcements to cater for the potential for reporting bias. I find that both the IFR and financial press announcements are significant for the five-day window, but only the financial press results are significant for the three-day window. My study is unique in that I differentiate the impact of different sources of information on the market reaction to borrower share price. In addition to the examination of the wealth effect, I also use the structure of the loans to examine the uniqueness of bank loans and their ability to provide financial slack. Specifically, I examine whether revolving credit loans or term loans or hybrid loans make bank loans unique and their ability to provide financial slack. I observe that out of the three structures of bank loan, only revolving credit loans allow the borrower to more precisely match the funds acquired with the firm’s investment needs and to market time by borrowing at times when financing costs are attractive. Revolving credit loans are positively valued by the market both initially and over the longer term. Bank loans reduce information asymmetry, but the renegotiation characteristics of revolving credit loans allow borrowers to exploit changes in the interest rate environment, thus providing support for the market timing theory of capital structure. In contrast to puzzling results of previous studies, I present evidence of long-term positive performance following bank loans.

No description available.

Previous studies have suggested that iron PRBs, receiving high concentrations of inorganic constituents in groundwater, may experience passivation because of the accumulation of inorganic precipitates. In an iron PRB containing more highly reactive material, even though the initial contaminant removal rate is faster than for less reactive material, a faster migration of the contaminant removal front may occur due to the greater reactivity loss, caused by faster accumulation of secondary precipitates. In contrast, an iron PRB containing less reactive material may show a slower accumulation of precipitates, and thus will show a slower migration of the contaminant removal front over time. Thus, it is hypothesized that an iron material having moderate initial reactivity may be more advantageous than material having a higher reactivity in terms of long-term performance. The objective of this study was to test this hypothesis by evaluating the changes of the reactivities of different iron materials in the presence of dissolved CaCO₃. <br /><br /> Four different iron materials (Connelly, G-M, Ispat and Peerless) were selected for the column experiments. The changes in reactivities of the iron and formation of secondary precipitates over time were assessed, primarily by the iron corrosion rates, calculated from the hydrogen gas generation rates, by the cis-DCE removal rates and by the alkalinity profiles. The accumulation of precipitates in the four columns caused passivation of the iron. The passivation of the iron in turn resulted in migration of the mineral precipitation fronts as well as profiles of cis-DCE, TCE, VC, alkalinity, Eh, pH, and chloride. Connelly and G-M had longer periods of operation than Ispat and Peerless and thus their performance was the primary test of the hypothesis. G-M iron, which had the higher initial corrosion rate, compared to Connelly, showed a faster accumulation of precipitates near the influent end. The difference in accumulated precipitates resulted in a difference in the leading edge of the organic profiles and a significant difference in the pattern of passivation, indicating a faster passivation in the region near the influent end for G-M. <br /><br /> Model simulations were performed using the same fitting parameters but with different initial corrosion rate constants to further test the hypothesis. The model provided a reasonable representation of changing reactivities of the columns, being consistent with the observed data. In the simulation for long-term prediction, the cases of higher corrosion rates showed earlier breakthroughs and steeper curves than those of lower corrosion rates. Also, the predictions showed greater porosity loss for the case of higher corrosion rate. Thus, long-term predictions support the hypothesis. Accurate determination of model parameters such as cis-DCE degradation rate constants and iron corrosion rates are required for better predictions of long-term performance.

Previous studies have suggested that iron PRBs, receiving high concentrations of inorganic constituents in groundwater, may experience passivation because of the accumulation of inorganic precipitates. In an iron PRB containing more highly reactive material, even though the initial contaminant removal rate is faster than for less reactive material, a faster migration of the contaminant removal front may occur due to the greater reactivity loss, caused by faster accumulation of secondary precipitates. In contrast, an iron PRB containing less reactive material may show a slower accumulation of precipitates, and thus will show a slower migration of the contaminant removal front over time. Thus, it is hypothesized that an iron material having moderate initial reactivity may be more advantageous than material having a higher reactivity in terms of long-term performance. The objective of this study was to test this hypothesis by evaluating the changes of the reactivities of different iron materials in the presence of dissolved CaCO₃. <br /><br /> Four different iron materials (Connelly, G-M, Ispat and Peerless) were selected for the column experiments. The changes in reactivities of the iron and formation of secondary precipitates over time were assessed, primarily by the iron corrosion rates, calculated from the hydrogen gas generation rates, by the cis-DCE removal rates and by the alkalinity profiles. The accumulation of precipitates in the four columns caused passivation of the iron. The passivation of the iron in turn resulted in migration of the mineral precipitation fronts as well as profiles of cis-DCE, TCE, VC, alkalinity, Eh, pH, and chloride. Connelly and G-M had longer periods of operation than Ispat and Peerless and thus their performance was the primary test of the hypothesis. G-M iron, which had the higher initial corrosion rate, compared to Connelly, showed a faster accumulation of precipitates near the influent end. The difference in accumulated precipitates resulted in a difference in the leading edge of the organic profiles and a significant difference in the pattern of passivation, indicating a faster passivation in the region near the influent end for G-M. <br /><br /> Model simulations were performed using the same fitting parameters but with different initial corrosion rate constants to further test the hypothesis. The model provided a reasonable representation of changing reactivities of the columns, being consistent with the observed data. In the simulation for long-term prediction, the cases of higher corrosion rates showed earlier breakthroughs and steeper curves than those of lower corrosion rates. Also, the predictions showed greater porosity loss for the case of higher corrosion rate. Thus, long-term predictions support the hypothesis. Accurate determination of model parameters such as cis-DCE degradation rate constants and iron corrosion rates are required for better predictions of long-term performance.

No description available.

4th International Conference on Advances in Experimental Structural Engineering, Ispra, Lombardy, Italy, June 29-30, 2011

No description available.

An initial public offering (IPO) represents a significant event in a firm’s lifecycle, marking the transition from being a privately held company to a publicly traded entity by offering its shares to the public for the first time. Several previous studies have shown that, from an investor point of view, IPOs posits the opportunity to earn substantial return, and that they also tend to underperform long-term. In recent years, stock market volatility has fluctuated considerably due to factors such as the global pandemic and geopolitical conflicts. These factors have led to varying stock market returns, affecting individuals' savings. Additionally, the number of investors in Sweden has grown substantially over the past decade. This, combined with the relatively unexplored nature of market volatility in IPO research, has laid the foundation for this study's focus. Therefore, the purpose of this study is to assess the impact market volatility has on the initial return and the long-term risk-adjusted return of IPOs in Sweden.  To fulfill this purpose, analyses have been undertaken to investigate the relationship between IPO short- and long-term returns and market volatility between 2019 and 2022. This timeframe encapsulates two years experiencing low market volatility (2019 and 2021), and two years experiencing higher market volatility (2020 and 2022). The data sample consists of 165 firms when measuring short-term returns, and 162 firms when measuring long-term returns, who have all had their IPO within this timeframe and are all listed on the Swedish stock market. To further contribute to the literature, the study incorporates the Efficient Market Hypothesis (EMH), Prospect Theory, and the Winner´s Curse Theory. These are three well-established and contrasting theories within IPO research which are introduced to see how well their perspectives align with the study's findings.  The empirical results from the statistical analyses showed varied outcomes. While a statistically significant difference could be identified between certain years, the majority did not. Since the majority of the tests conducted could not find a significant difference in return between high and low volatile years, market volatility at the time of an IPO does not significantly influence the return. Consequently, the findings suggest that employing an investment strategy that involves investing in IPOs based on market volatility levels is not superior to other strategies. These findings give investors deeper insights into how IPOs and their timing are influenced by market conditions and can therefore aid them in making more informed decisions.