Examine The Factors That Affect The Return to Bidder and Target Company Surrounding The Merger and Acquisition Announcements
As we understand the effect of merger and acquisition (M&A) from the five big M&A waves in the market. It is useful to have some kind of research activity on the profitability of M&A, as both bidders and target firms will interest it. Therefore the primary objective for this study will b...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2006
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| Online Access: | https://eprints.nottingham.ac.uk/20428/ |
| _version_ | 1848792073982967808 |
|---|---|
| author | Yeung, Shun Tony |
| author_facet | Yeung, Shun Tony |
| author_sort | Yeung, Shun Tony |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | As we understand the effect of merger and acquisition (M&A) from the five big M&A waves in the market. It is useful to have some kind of research activity on the profitability of M&A, as both bidders and target firms will interest it. Therefore the primary objective for this study will be to examine the impact of mergers and acquisition on the returns to the shareholders of both bidder and target firms surrounding the announcement days. We will use four different results to examine that (market & market-adjusted models with either industry or broad benchmarks). Our results conclude that that target firm should normally have a positive return, and the bidder's return evidence is not too clear, so we assume that to be zero. Also the merger announcement news and information is relatively efficient to take effect on the stock price. In the method of exchange, our result shows that the target firm will earn the most on the announcement date in cash deal, followed by mixed deal and finally stock deal.
The second objective of this study is to discover any factors that might closely related to returns to target and bidder shareholders on the days surrounding the announcement. We have tested for possible size effects, mean of payment impacts and degree of relation between target and bidder businesses. We have found an evidence contradicting value of control hypothesis. |
| first_indexed | 2025-11-14T18:38:37Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-20428 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:38:37Z |
| publishDate | 2006 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-204282018-03-25T14:28:30Z https://eprints.nottingham.ac.uk/20428/ Examine The Factors That Affect The Return to Bidder and Target Company Surrounding The Merger and Acquisition Announcements Yeung, Shun Tony As we understand the effect of merger and acquisition (M&A) from the five big M&A waves in the market. It is useful to have some kind of research activity on the profitability of M&A, as both bidders and target firms will interest it. Therefore the primary objective for this study will be to examine the impact of mergers and acquisition on the returns to the shareholders of both bidder and target firms surrounding the announcement days. We will use four different results to examine that (market & market-adjusted models with either industry or broad benchmarks). Our results conclude that that target firm should normally have a positive return, and the bidder's return evidence is not too clear, so we assume that to be zero. Also the merger announcement news and information is relatively efficient to take effect on the stock price. In the method of exchange, our result shows that the target firm will earn the most on the announcement date in cash deal, followed by mixed deal and finally stock deal. The second objective of this study is to discover any factors that might closely related to returns to target and bidder shareholders on the days surrounding the announcement. We have tested for possible size effects, mean of payment impacts and degree of relation between target and bidder businesses. We have found an evidence contradicting value of control hypothesis. 2006 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/20428/1/Tony_final%5B1%5D.pdf Yeung, Shun Tony (2006) Examine The Factors That Affect The Return to Bidder and Target Company Surrounding The Merger and Acquisition Announcements. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | Yeung, Shun Tony Examine The Factors That Affect The Return to Bidder and Target Company Surrounding The Merger and Acquisition Announcements |
| title | Examine The Factors That Affect The Return to Bidder and Target Company Surrounding The Merger and Acquisition Announcements |
| title_full | Examine The Factors That Affect The Return to Bidder and Target Company Surrounding The Merger and Acquisition Announcements |
| title_fullStr | Examine The Factors That Affect The Return to Bidder and Target Company Surrounding The Merger and Acquisition Announcements |
| title_full_unstemmed | Examine The Factors That Affect The Return to Bidder and Target Company Surrounding The Merger and Acquisition Announcements |
| title_short | Examine The Factors That Affect The Return to Bidder and Target Company Surrounding The Merger and Acquisition Announcements |
| title_sort | examine the factors that affect the return to bidder and target company surrounding the merger and acquisition announcements |
| url | https://eprints.nottingham.ac.uk/20428/ |