Post-merger operational performance of ICT companies in North America and Europe

dc.contributorAalto Universityen
dc.contributorAalto-yliopistofi
dc.contributor.advisorNyberg, Peter
dc.contributor.authorSilvanovich, Sofia
dc.contributor.departmentRahoituksen laitosfi
dc.contributor.schoolKauppakorkeakoulufi
dc.contributor.schoolSchool of Businessen
dc.date.accessioned2018-03-28T12:38:40Z
dc.date.available2018-03-28T12:38:40Z
dc.date.issued2017
dc.description.abstractThis thesis analyses operational performance of ICT companies in North America and Europe after mergers completed from 2000 to 2011. The measure of operational performance is EBITDA returns on the market value of assets, which is not dependent on the methods of financing the transaction or merger accounting. European merged companies demonstrate considerably lower abnormal returns on assets than North American firms, though the present study does not reach statistical significance of the American abnormal return coefficient due to the small sample. The results hold after control-ling for the price-to-book ratios of the target and the acquirer, value of transaction, method of pay-ment, relative value of the target to the acquirer, and cross-border nature of acquisitions. In addition, they are robust to equity fluctuations during the time studied and variance in industry definitions. Furthermore, there is a strong positive correlation between efficiency improvements after acquisi-tions and stock price returns around the merger announcements. The underperformance of Europe-an companies may be explained by the differences in telecom industry regulation between the EU member states as well as cross-border cultural differences.en
dc.ethesisid17083
dc.format.extent59
dc.format.mimetypeapplication/pdfen
dc.identifier.urihttps://aaltodoc.aalto.fi/handle/123456789/30360
dc.identifier.urnURN:NBN:fi:aalto-201803281827
dc.language.isoenen
dc.locationP1 Ifi
dc.programmeFinanceen
dc.subject.heleconrahoitusfi
dc.subject.heleconyrityskaupatfi
dc.subject.heleconoperaatiotutkimusfi
dc.subject.helecontietoliikennefi
dc.subject.heleconteleliikennefi
dc.subject.heleconteleoperaattoritfi
dc.subject.keywordmergersen
dc.subject.keywordacquisitionsen
dc.subject.keywordoperational performanceen
dc.subject.keywordICTen
dc.subject.keywordtelecommunicationsen
dc.titlePost-merger operational performance of ICT companies in North America and Europeen
dc.typeG2 Pro gradu, diplomityöfi
dc.type.ontasotMaster's thesisen
dc.type.ontasotMaisterin opinnäytefi

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