The Influence of Payment Methods on Acquiror Stock Price in Mergers and Acquisitions Bachelor
.
Abstract
This study is examining acquiror CAR on the day of announcement following acquisitions made by Swedish public companies. The study investigates whether the acquiror CAR differs between cash and stock based acquisitions. Furthermore, it is tested to what extent a set of chosen independent variables explain the acquiror CAR. The research questions concerning possible differences in acquiror CAR are tested by a t-test. To examine to what extent the set of chosen independent variables affect acquiror CAR, a set of OLS regressions based on cross-sectional data are conducted. The study finds the result that there is a significant difference in acquiror CAR following acquisitions paid with cash and acquisitions paid with stocks. The study does not find evidence for a difference in acquiror CAR following acquisitions abroad and domestic acquisitions. The study does not find any significant results concerning the extent to which the chosen independent variables affect the acquiror CAR, except for the variable stake, which was found to have a weak impact on acquiror CAR.
Degree
Student essay
Collections
View/ Open
Date
2023-07-04Author
Germunder, Ludwig
Hagström, Gustav
Keywords
Acquiror Cumulative Abnormal Return (CAR)
Cash Acquisitions
Stock Acquisitions
Mergers and Acquisitions (M&A)
Method of Payment
Series/Report no.
202307:041
Language
eng