This paper presents an investigation into the relationship between the announcement of acquisitions, the existence of positive abnormal return for shares of these firms and market efficiency in Germany, France and Great Britain. The sample of transactions ranged from January 2010 to December 2015. This thesis has used the event study methodology where the Cumulative Average Abnormal Returns (CAAR) of the target and bidder firm's stock prices in different event windows have been analysed. Across all the markets, target firm's stock price yields positive CAAR that is significantly different from zero on the day of the announcement. Unlike the target firms, bidder firms do not show statistically significant CAAR for all analysed markets. The second goal was to analyse market efficiency using CAAR data from the event study. It was concluded that the analysed markets behave in a semi-strong form of market efficiency with potential cases of insider trading identified.
| Identifer | oai:union.ndltd.org:nusl.cz/oai:invenio.nusl.cz:205414 |
| Date | January 2016 |
| Creators | Mitkov, Michal |
| Contributors | Brabenec, Tomáš, Hamplová, Barbora |
| Publisher | Vysoká škola ekonomická v Praze |
| Source Sets | Czech ETDs |
| Language | Slovak |
| Detected Language | English |
| Type | info:eu-repo/semantics/masterThesis |
| Rights | info:eu-repo/semantics/restrictedAccess |
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