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http://hdl.handle.net/1783.1/6407
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| Title: | Operating performance following mergers and acquisitions |
| Authors: | Bradulina, Elizaveta |
| Issue Date: | 2009 |
| Abstract: | In this paper, I review the finance literature on the costs and benefits of mergers and acquisitions and present new empirical results. Since many of the common methods used to calculate long-run abnormal stock returns following an event are conceptually flawed and often lead to biased test statistics, I focus instead on operating performance over one- and three-year horizon following mergers and acquisitions. I find that there is no significant difference between operating performance of firms that had recent M&A activity and the operating performance of their matching firms, where the matching is done based on industry, market-to-book ratio, and the past operating performance. Overall, small firms tend to have significantly better operating performance following M&A activity than large firms, and firms that report “acquisition of assets” as a form of deal tend to have better operating performance than firms that report “mergers.” However, the differences in operating performance become insignificant once I account for endogeneity by comparing the operating performance of firms that undergone mergers and acquisitions with that of their matching firms. I conclude that mergers and acquisitions do not affect the operating performance of firms in a long-term. |
| Description: | Thesis (M.Phil.)--Hong Kong University of Science and Technology, 2009
x, 36 p. : ill. ; 30 cm
HKUST Call Number: Thesis FINA 2009 Bradul |
| URI: | http://hdl.handle.net/1783.1/6407 |
| Appears in Collections: | FINA Master Theses
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