The Response of the UK Stock Market to the Announcement of a Merger/Acquisition. Evidence from Target and Bidder Companies

This dissertation uses the event study methodology to examine the short-run cumulative abnormal returns to UK based mergers and acquisitions between the years 2008-2014. By examining this short-run cumulative abnormal returns, the response of the UK stock market to the announcement of mergers/acquisitions post-financial crisis was deduced. To measure the stock market response accurately, a random sample of 128 companies engaging in consolidation transactions between 2008-2014 is broken down into 71 bidder companies and 57 target companies. The results from the event study conducted illustrate positive gains for both target and bidder companies. Positive gains signal a positive response by the UK stock market to the announcement of a merger/acquisition. Although returns from both target and bidding companies are statistically different from zero, the target companies show economic significance. Hence, an announcement of this consideration would lead to a large increase in target shareholder/investor wealth.     

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APA

Adeniji, A. (2018). The Response of the UK Stock Market to the Announcement of a Merger/Acquisition. Evidence from Target and Bidder Companies. Afribary. Retrieved from https://afribary.com/works/the-response-of-the-uk-stock-market-to-the-announcement-of-a-merger-acquisition-evidence-from-target-and-bidder-companies

MLA 8th

Adeniji, Adedamola "The Response of the UK Stock Market to the Announcement of a Merger/Acquisition. Evidence from Target and Bidder Companies" Afribary. Afribary, 14 Apr. 2018, https://afribary.com/works/the-response-of-the-uk-stock-market-to-the-announcement-of-a-merger-acquisition-evidence-from-target-and-bidder-companies. Accessed 14 Jun. 2024.

MLA7

Adeniji, Adedamola . "The Response of the UK Stock Market to the Announcement of a Merger/Acquisition. Evidence from Target and Bidder Companies". Afribary, Afribary, 14 Apr. 2018. Web. 14 Jun. 2024. < https://afribary.com/works/the-response-of-the-uk-stock-market-to-the-announcement-of-a-merger-acquisition-evidence-from-target-and-bidder-companies >.

Chicago

Adeniji, Adedamola . "The Response of the UK Stock Market to the Announcement of a Merger/Acquisition. Evidence from Target and Bidder Companies" Afribary (2018). Accessed June 14, 2024. https://afribary.com/works/the-response-of-the-uk-stock-market-to-the-announcement-of-a-merger-acquisition-evidence-from-target-and-bidder-companies

Document Details
By: Adedamola Adeniji Field: Finance Type: Thesis 41 PAGES (10625 WORDS) (docx)