The examination of stock returns of firms involved in mergers and acquisitions in the Greek market over the period 2010-2021
View/
Keywords
M&As ; Greek market ; Abnormal stock returns ; Industrial relatedness ; Consideration structure ; Target statusAbstract
Mergers and Acquisitions is a really popular topic considering that many empirical studies have been conducted through the years. This paper examines the impact of M&As in Greece during the decade 2010-2021 using the stock returns of the listed companies. The study employs event study analysis to calculate abnormal returns and Cumulative Average Abnormal Returns (CAARs) during specific event periods surrounding the announcement of M&A transactions. In addition, univariate analysis and multiple regression lead us to understand the underlying dynamics influencing the stock returns of acquirer firms. The calculated CAARs provide insights into the overall performance of acquiring firm over the event window period. Moreover, the univariate analysis examines the combined effects of various variables, such as the consideration form used (method of payment), industrial relatedness and listing status of targets driving the M&A transactions. Our univariate analysis results first establish that Greek acquirers’ gains are higher when they bid for listed targets using cash. Furthermore, the findings indicate that horizontal mergers produce higher abnormal returns for acquirers than non-horizontal mergers. The same conclusion holds when they acquire unlisted targets rather than listed ones. The multiple regression analysis clarifies the relationship between the independent variables -consideration structure, industrial relatedness, and target status- and the dependent variable of Cumulative Average Abnormal Return. The findings align with the existing literature and previous empirical studies, providing valuable insights into the factors that impact stock returns, including deal size, industry conditions, and overall market trends. Nevertheless, it is important to consider the sample size as a potential limitation. In other words, the results are in the same direction with the previous literature but they are not statistically significant due to the small sample size of M&As in the Greek market.
Postgraduate Studies Programme
Χρηματοοικονομική και Τραπεζική με ειδίκευση στη Χρηματοοικονομική και Τραπεζική ΔιοικητικήDepartment
Σχολή Χρηματοοικονομικής και Στατιστικής. Τμήμα Χρηματοοικονομικής και Τραπεζικής ΔιοικητικήςNumber of pages
69Language
English
Except where otherwise noted, this item's license is described as
Αναφορά Δημιουργού-Όχι Παράγωγα Έργα 3.0 Ελλάδα
Αναφορά Δημιουργού-Όχι Παράγωγα Έργα 3.0 Ελλάδα