Thesis submitted in fulfilment of the requirements for the degree of
Master of Management in Finance & Investment
in the Faculty of Commerce, Law and Management Wits Business School at the University of the Witwatersrand
2017 / This thesis empirically examines the stock market reaction to mergers and acquisitions (M&A) announcements in South Africa, and also analyses the effects of the method payment. Data was collected from 34 acquisitions, consisting of acquirer and target companies in the same industry listed on the Johannesburg Stock Exchange, (JSE). The transactions were of mergers and acquisitions for the period 2003 – 2013. The event study methodology was used to calculate cumulative average abnormal returns for the acquiring companies over the total event window. Parametric t-tests were then applied to test the significance of the cumulative average abnormal returns, and a comparison of the pre and post-announcement returns was done over the event window. A comparison is also done for cash and share acquisitions over the entire event window (-10, +10). From the findings, it is clear that there were no significant abnormal returns or significant differences between the pre and post announcement returns. Comparing the two payment methods (cash and share payments), the results also show that there were no significant differences between these methods. The study therefore concluded that merger and acquisition announcements did not create any value for shareholders of acquiring companies during and around the announcement period. / MT2017
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/23367 |
| Date | January 2017 |
| Creators | Ndlovu, Mthabisi |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | Online resource (45 leaves), application/pdf |
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