The Effects of Mergers and Acquisitions on the Performances of Acquiring Firms: Evidence from the UK Telecommunication Industry

Telecommunication industry is an innovative industry and becomes more and more important in our daily life. It is said that the furthest distance between people is without internet. In response to the globalization and industrial deregulation, telecommunication industry becomes the active player in...

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Main Author: SHI, Suocheng
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2015
Online Access:https://eprints.nottingham.ac.uk/29984/
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author SHI, Suocheng
author_facet SHI, Suocheng
author_sort SHI, Suocheng
building Nottingham Research Data Repository
collection Online Access
description Telecommunication industry is an innovative industry and becomes more and more important in our daily life. It is said that the furthest distance between people is without internet. In response to the globalization and industrial deregulation, telecommunication industry becomes the active player in merger and acquisition To investigate whether merger will bring the abnormal returns to bidders, the event study methodology is adopted. Market-adjusted model and mean-adjusted model are used to calculate abnormal returns over event windows [-1, +1], [-2, +2] and [-5, +5]. From the event study, it shows that bidders from telecommunication enjoy positive abnormal returns around the announcement date. From the univariate analysis, it shows that related mergers, cross-border mergers, mergers that pay with cash, mergers that have larger relative size of target, value acquirers, and mergers that acquire private target have positive returns. From the multivariate analysis, most of the findings are consistent with the univariate analysis. The most contradict finding is that mergers that have a larger relative size of target generate lower returns.
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spelling nottingham-299842017-10-19T14:51:31Z https://eprints.nottingham.ac.uk/29984/ The Effects of Mergers and Acquisitions on the Performances of Acquiring Firms: Evidence from the UK Telecommunication Industry SHI, Suocheng Telecommunication industry is an innovative industry and becomes more and more important in our daily life. It is said that the furthest distance between people is without internet. In response to the globalization and industrial deregulation, telecommunication industry becomes the active player in merger and acquisition To investigate whether merger will bring the abnormal returns to bidders, the event study methodology is adopted. Market-adjusted model and mean-adjusted model are used to calculate abnormal returns over event windows [-1, +1], [-2, +2] and [-5, +5]. From the event study, it shows that bidders from telecommunication enjoy positive abnormal returns around the announcement date. From the univariate analysis, it shows that related mergers, cross-border mergers, mergers that pay with cash, mergers that have larger relative size of target, value acquirers, and mergers that acquire private target have positive returns. From the multivariate analysis, most of the findings are consistent with the univariate analysis. The most contradict finding is that mergers that have a larger relative size of target generate lower returns. 2015 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/29984/1/The%20Effect%20of%20Mergers%20and%20Acquisitions%20on%20the%20Performances%20of%20Acquiring%20Firms_Evidence%20from%20the%20UK%20Telecom%20Industry.pdf SHI, Suocheng (2015) The Effects of Mergers and Acquisitions on the Performances of Acquiring Firms: Evidence from the UK Telecommunication Industry. [Dissertation (University of Nottingham only)]
spellingShingle SHI, Suocheng
The Effects of Mergers and Acquisitions on the Performances of Acquiring Firms: Evidence from the UK Telecommunication Industry
title The Effects of Mergers and Acquisitions on the Performances of Acquiring Firms: Evidence from the UK Telecommunication Industry
title_full The Effects of Mergers and Acquisitions on the Performances of Acquiring Firms: Evidence from the UK Telecommunication Industry
title_fullStr The Effects of Mergers and Acquisitions on the Performances of Acquiring Firms: Evidence from the UK Telecommunication Industry
title_full_unstemmed The Effects of Mergers and Acquisitions on the Performances of Acquiring Firms: Evidence from the UK Telecommunication Industry
title_short The Effects of Mergers and Acquisitions on the Performances of Acquiring Firms: Evidence from the UK Telecommunication Industry
title_sort effects of mergers and acquisitions on the performances of acquiring firms: evidence from the uk telecommunication industry
url https://eprints.nottingham.ac.uk/29984/