Digital Evolution: A Study on Financial Acquirors and Tech M&A Success

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School of Business | Bachelor's thesis
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Date

2023

Department

Rahoituksen laitos

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Mcode

Degree programme

Rahoitus

Language

en

Pages

25

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Abstract

In the era of rapid technological evolution, digital transformation has become imperative for businesses to stay competitive. This is particularly evident in the financial sector, where traditional institutions are adapting through mergers and acquisitions (M&A) with technology firms. This study explores the impact of technology-related M&A on the stock performance of financial acquirors in developed European countries. Focusing on a 10-year period (2012-2022), the research utilizes the event study method and regression analysis to investigate abnormal returns and factors influencing M&A outcomes. The results reveal positive cumulative abnormal returns, indicating investor optimism about the strategic advantages of these acquisitions. Additionally, the study considers other factors that impact M&A performance, such as information asymmetry, systematic risk, and cross-border acquisitions. The study contributes valuable insights to the literature on technology M&A, emphasizing the need for comprehensive analyses of acquiror characteristics and deal-specific factors.

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Thesis advisor

Lof, Matthijs

Keywords

M&A, acquisitions, stock returns, FinTech

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https://urn.fi/URN:NBN:fi:aalto-202401281954

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[kand] Kauppakorkeakoulu / BIZ