Value effects surrounding Arcelor-Mittal merger announcements: Idiosyncratic factors explaining abnormal returns of competitors stocks
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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acquirer returns acquisition adjusted R square analysis ANOVA Arcelor-Mittal merger available book-to-market value calculation Capron and Shen Carow characteristics Effect Authors company’s competitors stocks control variables cumulative abnormal returns current data day estimation period Deal characteristics Descriptive results Descriptive statistics Deviation different Diversification level Dofasco dummy variable efficiency and information event A3 expected effects Faccio Fee and Thomas following the announcement four events Herfindahl index HQ Location hypotheses Idiosyncratic factors impact included Independent variable influence information effect theory intangible international scope investors Large cash holdings limited literature M&A Experience macro market capitalisation market capitalization Market Value McConnel and Stolin merger announcement moderates the wealth Moeller Mullins number Otchere and Mustopo positively moderates productive efficiency Regression model relevant factors rival following Schlingemann and Stulz Servaes Severstal Sharur steel industry steel produced Stillman study suppliers support No support Table Thomson One Banker Tobin’s q Tobin`s q U.S. Steel wealth effects experienced