Not logged in.
Quick Search - Contribution
Contribution Details
Type | Master's Thesis |
Scope | Discipline-based scholarship |
Title | The Link Between Bid Premiums and Synergies in M&A: An Event Study Approach |
Organization Unit | |
Authors |
|
Supervisors |
|
Language |
|
Institution | University of Zurich |
Faculty | Faculty of Business, Economics and Informatics |
Number of Pages | 41 |
Date | 2020 |
Abstract Text | Awareness of how shareholders perceive announced transactions is crucial for managers of public companies, as wrong decisions can lead to significant value destruction. This thesis explores, whether premiums a↵ect transaction announcement returns di↵erently in the short term, when capturing synergies between the acquirer and target company is more feasible. Using the event study methodology, this thesis provides significant evidence for a positive change in the correlation between premium and abnormal returns to the acquirer for transactions with lower expected synergies. It is concluded, that strong fundamentals of the target company might be more important to shareholders than strategic fit. |
Export | BibTeX |