Abstract Title: Announcing an acquisition, what happens next? Authors: Carl Åkesson and Hasan Beslija Supervisor: Katarina Eriksson Background: Sweden is the Nordic region's largest market for M&A. Despite this, there is a limited research base for how acquisitions affect abnormal returns on the Swedish stock market. There is no consensus among previous studies on how the bidding firms are affected in the short run by acquisitions or how the abnormal return is affected by firm size and form of acquisition. Purpose: The purpose of the study is to investigate whether there is an abnormal return in the short run for bidding firms when announcing an acquisition and how it differs between different company sizes and different forms of acquisitions. Methodology: The study is of quantitative nature and has been conducted with a deductive approach. The research questions of this study have been chosen with previous studies in mind. Furthermore, the study has used two methods; event study and regression analysis. In addition to these methods, tests have been carried out with the aim of statistically ensuring the abnormal return that has arisen in the event study. Results: The results of the study show that an announcement of an acquisition leads to a negative average cumulative abnormal return in the short run. For the different company sizes, large cap has the most negative average cumulative abnormal return. For the various acquisition forms, horizontal acquisitions have the most negative average cumulative abnormal return. The study's regression analysis show that company size and acquisition form have a low degree of explanation for the emergence of abnormal returns. Keywords: Abnormal returns, acquisitions, event study, cumulative abnormal return
| Identifer | oai:union.ndltd.org:UPSALLA1/oai:DiVA.org:liu-177628 |
| Date | January 2021 |
| Creators | Beslija, Hasan, Åkesson, Carl |
| Publisher | Linköpings universitet, Institutionen för ekonomisk och industriell utveckling, Linköpings universitet, Filosofiska fakulteten |
| Source Sets | DiVA Archive at Upsalla University |
| Language | Swedish |
| 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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