Shareholder Wealth Effect of Cross-border Acquisitions: Evidence from the Nordics
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School of Business |
Bachelor's thesis
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Date
2018
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Mcode
Degree programme
Rahoitus
Language
en
Pages
20 + 2
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Abstract
This study examines the short-term wealth effects of 1804 domestic and cross-border acquisitions of the Nordic companies during the years 2002-2017. The aim of the study is to find out how the acquirer announcement returns are affected by the origin of the target company. I apply traditional event study methods and cross-sectional regression to analyze whether the announcement returns earned by Nordic acquirers are different between cross-border and domestic acquisitions. Consistent with the recent research on the European market, Nordic acquirers earn approximately 0.89% lower announcement returns around the announcement day in cross-border acquisitions compared to domestic acquisitions.Description
Thesis advisor
Jylhä, PetriKeywords
mergers and acquisitions, cross-border acquisitions, event study, announcement returns