aalto1 untyped-item.component.html
Cash holdings and acquirer announcement returns
Loading...
URL
Journal Title
Journal ISSN
Volume Title
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.
Authors
Date
Department
Major/Subject
Mcode
Degree programme
Language
en
Pages
28
Series
Abstract
This study examines how cash holdings of publicly listed Nordic companies affect acquisition returns, based on 1175 deals made between 2010 and 2023. By first estimating the optimal cash holdings and acquisition expectations of Nordic firms, this study finds a negative relationship between cash holdings and announcement returns, but only for unexpected acquirers with constrained investment opportunities. Conversely, unexpected cash-rich acquirers with good investment opportunities have positive announcement returns. Overall, this study provides new evidence of agency problems in Nordic countries, supporting prior literature.