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Student Number 954208018
Author Tsui-Fen Ma(°¨»Aªâ)
Author's Email Address No Public.
Statistics This thesis had been viewed 1980 times. Download 10 times.
Department Finance
Year 2007
Semester 2
Degree Master
Type of Document Master's Thesis
Language English
Title Firm Size and the Gains of Acquirers in the UK
Date of Defense 2008-06-17
Page Count 39
Keyword
  • mergers and acquisitions
  • methods of payment
  • organizational form
  • size effect
  • Abstract This study examines the relationship between firm size and the abnormal returns of mergers and acquisitions in the UK. We analyze a sample of 1,085 M&As over the period 1996
    to 2005. Large acquirers earn significant positive returns during the period surrounding the bid announcement. There is no obvious size effect for M&As in the UK. The gains are
    also dependent on the organizational form of acquired assets and methods of payment. As a result, we sort our sample by different organizational form of acquired assets and different methods of payment. The result shows that M&As of private target and payment with mixed method gain significantly and it is consistent with the managerial motive hypothesis and liquidity hypothesis. In the long run, there is evidence that the stock performance of acquiring firms is reversed over time. The post-event long-term result for small acquirers is better than large acquirers irrespective of the organizational form of acquired assets and methods of payment. Further, the abnormal return of subsidiary target is higher than private and public target.
    Table of Content Contents
    1 Introduction 1
    2 Data 4
    3 Methodology 5
    3.1 Cumulative Abnormal Return (CAR) . . . . . . . . . . . . . . . . . . . . . 5
    3.2 Buy and Hold Abnormal Return (BHAR) . . . . . . . . . . . . . . . . . . 6
    3.3 Calendar−Time Abnormal Return (CTAR) . . . . . . . . . . . . . . . . . 8
    4 Empirical Results 9
    4.1 Summary Statistics on Mergers and Acquisitions Characteristics . . . . . . 9
    4.2 Cumulative Abnormal Return (CAR) . . . . . . . . . . . . . . . . . . . . . 11
    4.3 Cross-Sectional Regression Analysis . . . . . . . . . . . . . . . . . . . . . . 12
    4.4 Buy and Hold Abnormal Return (BHAR) . . . . . . . . . . . . . . . . . . 14
    4.5 Calendar−Time Abnormal Return (CTAR) . . . . . . . . . . . . . . . . . 16
    5 Conclusion 17
    Reference 20
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    Advisor
  • Keng-yu Ho(¦ó¯Ñ¦t)
  • Files
  • 954208018.pdf
  • disapprove authorization
    Date of Submission 2008-06-23

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