Profitability Analysis of Mergers and ➕ Acquisitions. An Event Study

Profitability Analysis of Mergers and ➕ Acquisitions. An Event Study

👓 Dilshad Mehroz Nida
Profitability Analysis of Mergers and ➕ Acquisitions. An Event Study

Profitability Analysis of Mergers and ➕ Acquisitions. An Event Study

✅ A strong relationship has always been suggested between fluctuations in stock prices and ➕ news 🆕 of mergers and ➕ acquisitions. Although, there is definitely action in the prices of stocks around the days when mergers are announced, but they may not ❌️ be significant in determining the reason for this particular behavior. The book 📚️ testifies to the market efficiency with respect to mergers and ➕ acquisitions announcements, using an event study methodology. This methodology has been applied to analyze the response of financial markets to changes in the banking 🏦 industry 👨‍🏭️ as a result of Mergers and ➕ Acquisitions. A merger or an acquisition is assumed to create value if the returns ↪️ on the shares of the acquirers and ➕ the targets 🎯 increase on the announcement of the merger. In this book 📚️, returns ↪️ on the stocks of banks 🏦 are compared to the market returns ↪️ in order to study the effects of announcements of bank 🏦 mergers on stock values in Europe 🌍️.



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