Mergers and Acquisition in the Iron and Steel Sector Based in UK and US
From the past few year, Mergers and Acquisitions (M&A) have ruled the environment in which the companies function. Many researchers have also been carried out where the main focus of the study is on the abnormal returns of the acquirers of the firm after the merger. The results have discovere...
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2008
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| Online Access: | https://eprints.nottingham.ac.uk/22297/ |
| Summary: | From the past few year, Mergers and Acquisitions (M&A) have ruled the environment
in which the companies function. Many researchers have also been carried out where
the main focus of the study is on the abnormal returns of the acquirers of the firm
after the merger. The results have discovered that on average, the returns to the target
companies are positive and that they gain from mergers. However, the bidder returns
may be zero or negative, but it still remains a puzzle if they gain from mergers in the
long run. This research studies the performance of mergers and acquisitions and its
influence on the returns of the acquirers of the firm. It considers a sample size of 51
companies covering UK and US in iron and steel sector and studies the performance
of companies after merger and acquisition. Here use the event study with market
model approach to test the profitability of the merger. |
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