Value effects surrounding Arcelor-Mittal merger announcements: Idiosyncratic factors explaining abnormal returns of competitors stocks
GRIN Verlag, 2010 - 60 pages
Masterarbeit aus dem Jahr 2008 im Fachbereich BWL - Investition und Finanzierung, Note: 8, Erasmus Universiteit Rotterdam, Sprache: Deutsch, Abstract: This master thesis tests different financial and non-financial factors concerning their influence as moderators on rival wealth effects after four significant steel industry merger announcements. It relates the results to earlier macro theories, such as the market collusion, buyer power and productive efficiency / information effect hypothesis. The research finds that the factors used are generally non-significant moderators after the announcement is made, with their direction depending upon the type of announcement. The study concludes that research based purely on financial factors will not be able to create an optimal mapping of relevant factors. It also finds that the productive efficiency hypothesis is well suited to explain the observed results and that future wealth impact models should build upon information from different scientific fields.
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acquisition adjusted R square analysis ANOVA ANOVA results Arcelor book-to-market calculation Capron and Shen company’s competitors stocks control variables cumulative abnormal returns currency Descriptive results Deviation diversiﬁcation Diversification level Dofasco dummy variable event A3 exchange variable Faccio factors explaining Fee and Thomas ﬁnal Financial Economics ﬁnd ﬁrms following the announcement four events HQ Location hypotheses Idiosyncratic factors impact included Independent variable inﬂuence information effect theory intangible International Scope investors Journal of Financial Large cash holdings M&A Experience market capitalisation market capitalization Market Value McConnel and Stolin moderates the wealth Mullins N0 Support Otchere and Mustopo positively moderates Primary SIC productive efﬁciency proﬁtability regression model relevant factors rival following sample Schlingemann and Stulz Severstal Sharur SIC code signiﬁcant speciﬁc steel industry steel produced Stillman suppliers support No support Table Thomson One Banker Tobin‘s q Tobin’s q Total U.S. Steel Volume wealth effects experienced