Post-acquisition performance of acquiring firms in the telecommunication industry,UK 2000-2010

Jaicim, Harshil (2013) Post-acquisition performance of acquiring firms in the telecommunication industry,UK 2000-2010. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

I examine a sample of friendly takeovers in the telecommunication industry, in the UK from the period 2000 to 2010. An event study is carried out around the announcement date of acquisitions, and I calculate the abnormal returns to the acquiring firms in this event window. In particular, this study will go on to focus on the post-acquisition performance of the acquirer with regards to method of payment (cash and mixed acquisitions) and the industry relatedness between the acquiring and target firms.

The results indicate that in the post-acquisition period, mixed financed acquisitions experience positive and better CAAR, whereas cash acquisitions had negative CAAR. Conglomerate acquisitions have led to positive and better CAAR, compared to non-conglomerate acquisitions which had negative CAAR. As for the total sample, acquisitions led to positive abnormal returns but worse than prior the announcement, with CAAR decreasing at the end of the event window.

Definition: CAAR= Cumulative Average Abnormal Returns

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 04 Mar 2014 14:55
Last Modified: 23 Oct 2016 11:09
URI: http://eprints.nottingham.ac.uk/id/eprint/26522

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