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

Major/Subject

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.

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Thesis advisor

Jylhä, Petri

Keywords

mergers and acquisitions, cross-border acquisitions, event study, announcement returns

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