Telecommunication Mergers and Acquisitions: An Event Study Analysis

Agarwal, Hemant (2009) Telecommunication Mergers and Acquisitions: An Event Study Analysis. [Dissertation (University of Nottingham only)] (Unpublished)

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The change in global communications in the past decade has been remarkable, bringing

fundamental changes in the structure and the regulation of telecom markets worldwide.

Leading edge technology and liberal telecom solutions have caught the eye of several

telecommunication manufacturers, service providers, and operators.

There are studies that report only the acquiring firm’s returns or the target firm’s returns.

Some of them report the abnormal returns for the combined acquiring and target firm’s

shareholders. The acquiring firm is the one that wants to acquire another firm, and the target

firm is the one that risks being acquired. My research aims to measure the abnormal returns

of the acquiring firm due to the announcement of a merger. For this purpose an Event study

was undertaken on a sample consisting of 88 telecommunication mergers in the USA and the

UK in the past 10 years. The results yielded that the acquiring firm does experience some

positive returns due to the announcements of mergers. Method of payment as a factor for

change in the returns was also examined in this report, the results yield that mixed and cash

transactions are beneficial whereas stock transactions result in negative returns for the


Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 07 Sep 2009 13:08
Last Modified: 16 Oct 2016 18:16

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