An Analysis of Mergers and Acquisition in Iron and Steel Sector

Bagaria, Sonal (2009) An Analysis of Mergers and Acquisition in Iron and Steel Sector. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

Although mergers and acquisitions have been an essential element of corporate strategy all over

the world for several years, but it still remains a puzzle if there are substantial gains from

mergers in the long run. There is thus a constant debate on the consequence of M&A’s on firms.

However, few appear to be aware about the long term post performance of firms and the strategic

factors that affect this performance.

My research puts an effort to provide brief knowledge about performance of companies in light

of their merger and acquisition activities. I have used sample size of 51 companies covering UK,

Luxemburg and USA from the iron and steel sector and examined the change in companies’

share prices after undergoing a merger or acquisition. This research studies the performance of

mergers and acquisitions and its influence on the returns to the shareholders of the acquiring firm

surrounding the announcement days. The event study with market model approach is used to

calculate the profitability of a merger and then consider different statistical test results to

examine that. To understand the variations in the returns to shareholder’s on account on a

merger/acquisition activity the research is linked to some factor which might be closely related to

returns to the bidder shareholders on the days surrounding the announcement. The research

focuses on different deal size as a crucial parameter for impacting the returns.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 14 Jul 2009 10:32
Last Modified: 28 Sep 2016 09:53
URI: http://eprints.nottingham.ac.uk/id/eprint/22648

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