This study is aimed at investigating the effect of mergers and acquisitions on the share
prices and dividends involving South African companies in the food and beverage
industry.
A sample of 79 mergers from 1999 to 2005 was used. The data was analysed using the
event study methodology and descriptive statistics. In addition, the paired t-test was also
conducted to test the significance of the results. The results were presented using graphs,
tables and charts.
The results showed that target companies obtained negative abnormal returns during the
announcement of mergers while acquiring companies on the other hand received positive
abnormal returns. The results imply that it can no longer be generalized that target
companies always win and acquiring companies lose during the merger activity.
On the other hand, the dividends for target companies increased significantly after the
merger, while the dividends for acquiring companies remained insignificantly negative
after the merger. / Graduate School of Business Leadership / MBL
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:unisa/oai:umkn-dsp01.int.unisa.ac.za:10500/62 |
| Date | January 2007 |
| Creators | Myeni, Wiseman Bellingham Wanda |
| Contributors | Reddy, Jay |
| Publisher | University of South Africa |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Research Report |
| Format | 1 online resource (85 leaves) |
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