This thesis builds upon literature that for many decades have examined the possible wealth creation of M&A’s. We investigate the acquiring firms share value response to M&A’s performed by public acquirers active on the Swedish market in 1998-2016. Our research builds upon previously conducted studies depicting both positive- and negative returns. Furthermore, our study considers how M&A’s are affected by merger waves and their creation of hot and cold markets. Our sample consists of 517 acquisitions including both smaller and larger transactions. Through an event-study, we investigate how the share value reacts during an 11 day event window surrounding the announcement of an M&A. Our findings show predominantly positive abnormal returns disputing much of the previous M&A research. Additionally, because abnormal returns are present throughout the event window, our results indicate that the Swedish market does not operate at a strong level of efficiency. Our main contribution is providing a coherent view of M&A’s conducted in Sweden during nearly two decades. As well as, providing evidence that M&A’s create value for the acquirer.
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:uu-325229 |
| Date | January 2017 |
| Creators | Lagerstedt, David, White, Stuart |
| 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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