Economic Policy Uncertainty, Effect on M&As, Evidence from the UK Market
No Thumbnail Available
Aalto login required (access for Aalto Staff only).
School of Business | Bachelor's thesis
Unless otherwise stated, all rights belong to the author. You may download, display and print this publication for Your own personal use. Commercial use is prohibited.
AbstractThis bachelor's thesis investigates the impact of economic policy uncertainty (EPU) on mergers and acquisitions (M&As) within the UK market. The sample for the study consists of 5255 M&A deals spanning the period from 2000 to 2022. This study builds on the foundations of existing literature in the field and offers a fresh view on how the M&A market reacts to high uncertainty by comparing data from stable and unstable periods. The results from the quantitative study suggest a 7,7 % drop in the number of monthly deals and 18,5 % drop in monthly aggregate deal value, in response to a one standard deviation increase in EPU. Additionally, the study displays evidence of a weakened relationship between EPU and M&As, during an extended period of high policy uncertainty.
Thesis advisorLuotonen, Niilo
economic policy uncertainty, mergers and acquisitions, UK, M&A, EPU