The impact of mergers and acquisitions announcements on the share price performance of acquiring companies: South African listed companies

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dc.contributor.authorNdlovu, Mthabisi
dc.date.accessioned2017-11-06T06:38:00Z
dc.date.available2017-11-06T06:38:00Z
dc.date.issued2017
dc.descriptionThesis submitted in fulfilment of the requirements for the degree of Master of Management in Finance & Investment in the Faculty of Commerce, Law and Management Wits Business School at the University of the Witwatersrand 2017en_ZA
dc.description.abstractThis thesis empirically examines the stock market reaction to mergers and acquisitions (M&A) announcements in South Africa, and also analyses the effects of the method payment. Data was collected from 34 acquisitions, consisting of acquirer and target companies in the same industry listed on the Johannesburg Stock Exchange, (JSE). The transactions were of mergers and acquisitions for the period 2003 – 2013. The event study methodology was used to calculate cumulative average abnormal returns for the acquiring companies over the total event window. Parametric t-tests were then applied to test the significance of the cumulative average abnormal returns, and a comparison of the pre and post-announcement returns was done over the event window. A comparison is also done for cash and share acquisitions over the entire event window (-10, +10). From the findings, it is clear that there were no significant abnormal returns or significant differences between the pre and post announcement returns. Comparing the two payment methods (cash and share payments), the results also show that there were no significant differences between these methods. The study therefore concluded that merger and acquisition announcements did not create any value for shareholders of acquiring companies during and around the announcement period.en_ZA
dc.description.librarianMT2017en_ZA
dc.format.extentOnline resource (45 leaves)
dc.identifier.citationNdlovu, Mthabisi (2017) The impact of mergers and acquisitions announcements on the share price performance of acquiring companies: South African listed companies, University of the Witwatersrand, Johannesburg, <http://hdl.handle.net/10539/23367>
dc.identifier.urihttp://hdl.handle.net/10539/23367
dc.language.isoenen_ZA
dc.subject.lcshConsolidation and merger of corporations--South Africa
dc.subject.lcshStock price indexes--South Africa
dc.subject.lcshJohannesburg Stock Exchange
dc.titleThe impact of mergers and acquisitions announcements on the share price performance of acquiring companies: South African listed companiesen_ZA
dc.typeThesisen_ZA
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