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| Type | Master's Thesis |
| Scope | Discipline-based scholarship |
| Title | Long-Term Post-Merger Performance |
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| Language |
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| Institution | University of Zurich |
| Faculty | Faculty of Economics, Business Administration and Information Technology |
| Number of Pages | 42 |
| Date | 2015 |
| Abstract Text | The research on the e ect of Mergers and Acquisitions (M&A) on abnormal performance as well as shareholder wealth is well-documented, especially for short-term analyses surrounding the announcement of a transaction in order to asses market eciency or detect insider trading activities. Additionally, a smaller part analyses the long-term post-merger performance and long-term wealth e ects and often, only little attention was paid to the results obtained in those studies due to believing in market eciency (Agarwal and Ja e, 2000). Considering the motives of M&A transactions, they are very often conducted to create value for the company's shareholders, to realise synergistic gains or to eliminate redundant functions, among others (Koller, Goedhart, and Wessels, 2010). Nevertheless, some empirical studies report a signi cant and negative abnormal performance following completion dates providing evidence of an underperformance, of negative wealth e ects, and of evidence against market eciency. Moreover, the results reveal that the motives and intentions of M&A transactions are often not accomplished. Fama (1998) refers to such ndings as being anomalies which are often chance results and which tend to disappear in combination with improved measurement techniques. As a result, this contribution reassesses the abnormal performance of US domestic acquiring rms and the impact of deal- and rm-speci c characteristics on long-term post-merger performance by means of improved techniques and statistical procedures. |
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