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| Type | Master's Thesis |
| Scope | Discipline-based scholarship |
| Title | Cumulative abnormal returns from M&A during the COVID-19 pandemic in the US |
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| Institution | University of Zurich |
| Faculty | Faculty of Business, Economics and Informatics |
| Number of Pages | 30 |
| Date | 2022 |
| Abstract Text | This thesis uses the event study methodology to examine US mergers and acquisitions deals before and during the COVID-19 pandemic. In particular, stock prices after the announcement of the deal are observed. It was assumed in advance that when a deal was announced, stock prices would rise more sharply during the COVID-19 pandemic than before, especially in poorly performing sectors. But there was no clear evidence for target firms to report higher cumulative abnormal returns during the pandemic period. However, acquiring firms reported significantly higher cumulative abnormal returns across all transactions during the pandemic.In particular, same-sector mergers and acquisitions transactions were valued significantly higher during the pandemic. The sectors that suffered the most since beginning of the pandemic did not all achieve higher shareholder returns during the pandemic. However, same-sector transactions led to significantly higher cumulative abnormal returns for all shareholders of acquiring firms in these sectors. |
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