Does Policy Uncertainty Affect Mergers and Acquisitions? Evidence from Europe
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School of Business |
Bachelor's thesis
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Date
2020
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Mcode
Degree programme
Rahoitus
Language
en
Pages
20+1
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Abstract
This study investigates the impact of economic policy uncertainty on M&A activity in Europe. The results indicate robust evidence that policy uncertainty affects M&A activity negatively. When policy uncertainty increases one standard deviation, the aggregate deals volume decreases by 15.2 %, and aggregate deals value by 22.2 %, on average. Also, I found out that the effect has been smaller after the financial crisis, when the M&A market has been more stable. The effect is economically and statistically significant. This information is essential when analysing the determinants of M&A activity in Europe.Description
Thesis advisor
Kokkonen, JoniKeywords
M&A, mergers and acquisitions, policy uncertainty, merger waves