The Impact of Acquisitions on Share Pricing and Long Term Performance – Empirical Evidence from the Global Automotive Industry

Automotive industry has faced intense consolidation pressure, which has lead to increasing number of M&As. However, empirical evidence has given controversial results suggesting that most of M&As are value destructive for acquiring companies and for acquiring companies’ shareholders. The objective of this master’s thesis is to examine how acquiring companies’ shareholders react to acquisition announcement and is the reaction in line with the long-term performance. This study uses empirical evidence from automotive industry, which has been characterized as an industry that holds large amount of vertical and horizontal synergies. Transaction data consists of 65 acquisitions made by publicly listed companies between 2008-2010. The short-term impact is tested by applying event study methodology while the long term operative performance is examined with accounting study methodology. The event study results indicate that during the three days after acquisition (t= 0-2), the acquiring firms’ stocks generate an abnormal return of 1.22% on average across all acquisitions. When long term performance is studied it is evident that acquiring companies perform better than the industry median pre- and post-transaction but there is no statistically significant evidence that the performance has increased. The only performance ratio indicating statistically significant decrease is Return on Equity (ROE). On long-term horizontal acquisitions seem to outperform conglomerate ones but otherwise deal characteristics do not have any statistically significant impact.

Long-term fertilizer field trials: comparison of three mathematical response models

Selostus: Lannoituksen pitkäaikaiset kenttäkokeet: kolmen matemaattisen mallin vertailu

Drought response of modern and old oat lines in greenhouse and long-term field trials

Selostus: Vanhojen ja uusien kauralajikkeiden reagointi kuivuuteen kasvihuone- ja peltokokeissa

Effect of fertilization on soil phosphorus in a long-term field experiment in southern Finland

Selostus: Maan fosforitilan muutos pitkäaikaisessa kenttäkokeessa hietamaalla

Long-term effects of maintaining ditch networks on runoff water quality

Tiivistelmä: Kunnostusojituksen pitkän ajan vaikutus valumaveden ominaisuuksiin

Long-term impacts of forest harvesting related soil disturbance on log product yields and economic potential in a New Zealand forest

Abstract

Natural development of stand structure in peatland Scots pine following drainage : results based on long-term monitoring of permanent sample plots

Abstract

Phosphorus status of diverse soils in Finland as influenced by long-term P fertilisation 1

Selostus: Pitkäaikaisen fosforilannoituksen vaikutus Suomen peltojen fosforitilaan. 1. Maan luontainen ja aikaisemmin kertynyt fosfori 24 koepaikalla

Phosphorus status of diverse soils in Finland as influenced by long-term P fertilisation 2

Selostus: Pitkäaikaisen fosforilannoituksen vaikutus Suomen peltojen fosforitilaan. 2. Kemiallisten testien muutokset suhteessa fosforitaseeseen sekä aikaisemmin ja koevuosina lisätyn fosforin multaussyvyyteen