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Cross Border Merger & Acquisition vs Domestic Merger & Acquisition: Which of them give greater return to the Acquirer? In UK perspective

Chilukuri, Sukumar (2018) Cross Border Merger & Acquisition vs Domestic Merger & Acquisition: Which of them give greater return to the Acquirer? In UK perspective. Masters thesis, Dublin, National College of Ireland.

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Abstract

Mergers and Acquisitions (M&A) are one of the key strategies used by corporate entities to grow and sustain in this competing world. This dissertation studies impact of cross border and domestic M&A on share price of acquirer. This study concentrated on UK public listed companies which participated in M&A. After globalisation lot of corporates started to penetrate other markets to gain from such collaboration. So, there is a need for study on how well the strategy of M&A work on the acquirer company.

The core objective of this thesis is to investigate M&A event and compare cross border M&A and domestic M&A performed by UK public companies between 2012 to 2016. Share price analysis is performed on sample of companies and compared returns in both domestic and cross border M&A events.

Two types of models (market and mean adjusted model) are used to examine the returns due to M&A event and empirically studied the trends of M&A in United Kingdom. Market model compared the returns due to M&A to market returns while Mean adjusted model compared the returns due to M&A to returns of same company at an event free period. This study also discusses how shareholders of acquirer firms received returns at various intervals in long and short term.

After different types of data analysis this study concluded with a finding that domestic M&A gave higher or significantly more returns to shareholders of acquirer firms than cross border M&A.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HG Finance
H Social Sciences > HD Industries. Land use. Labor > Large Industry. Corporations. > Consolidation and Merger of Corporations
Divisions: School of Business > Master of Science in Finance
Depositing User: CAOIMHE NI MHAICIN
Date Deposited: 30 Oct 2018 13:44
Last Modified: 30 Oct 2018 13:44
URI: http://trap.ncirl.ie/id/eprint/3360

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