Previous literature has stated that few mergers are successful and many fail to meet the set expectations. This study aims to compare cross-border mergers, between corporations from Sweden and from the United States of America, with in-border mergers between Swedish corporations to explore possible differences in synergy gains. The synergy gains are proxied by abnormal returns 80 trading-days post the merger completion date. The results in this study are not statistically significant, however it indicates that cross-border mergers have a negative average cumulative abnormal return while in-border mergers have a positive average cumulative abnormal return. Therefore, this study argues that the result could be a consequence of greater cultural differences for cross-border mergers than in-border mergers and imply that in-border mergers could be the better alternative for Swedish corporations in comparison to cross-border mergers. Additionally, cultural differences should be investigated before a merger decision is taken. Future research should investigate how cultural differences affect synergy gains with a larger sample and include corporations from more nations.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:uu-357914 |
| Date | January 2018 |
| Creators | Grönlund, Michelle, Gideskog Malmgren, Lisalina |
| Publisher | Uppsala universitet, Företagsekonomiska institutionen, Uppsala universitet, Företagsekonomiska institutionen |
| Source Sets | DiVA Archive at Upsalla University |
| Language | English |
| Detected Language | English |
| Type | Student thesis, info:eu-repo/semantics/bachelorThesis, text |
| Format | application/pdf |
| Rights | info:eu-repo/semantics/openAccess |
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