Not logged in.
Quick Search - Contribution
Contribution Details
| Type | Master's Thesis |
| Scope | Discipline-based scholarship |
| Title | The Value Effect of Diversification Strategy Through M&A by Mining Companies |
| Organization Unit | |
| Authors |
|
| Supervisors |
|
| Language |
|
| Institution | University of Zurich |
| Faculty | Faculty of Business, Economics and Informatics |
| Number of Pages | 23 |
| Date | 2020 |
| Abstract Text | During the 2000s commodity price boom a growing attention was paid to the mining industry. Mergers and acquisitions activity was increasing and some of the mining companies diversified their operations. Various academic works find mixed evidence on the value effects of corporate diversification strategy. This thesis focuses on diversifying mergers and acquisitions in the mining industry that were announced during 1990-2019 and applies an event study methodology. The results of this study show that M&A announcement wealth effects for target shareholders are, on average, positive and significant, while insignificant for acquirer shareholders. Combined abnormal returns are positive and significant. Market reaction is similar for diversifying and non-diversifying deals, which indicates that it does not view one type of the deal more negatively than another. |
| Export |
BibTeX
|