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Empirical Research On The Announcement Effect Of Stock Return From Mergers And Acquisitions

Posted on:2007-10-13Degree:MasterType:Thesis
Country:ChinaCandidate:J J XuFull Text:PDF
GTID:2189360212486491Subject:Finance
Abstract/Summary:PDF Full Text Request
Nowadays, Mergers and Acquisitions of enterprises is the most important rule of"Survival of the fittest"in the market. And the Mergers and Acquisitions is the main point which is studied by researchers from the entire world. In china, researchers pay more attentions to this. Mergers and Acquisitions play role of assigning the resources in the market, it even overpasses the IPO. So it is necessary to study on it. Among all those related to Mergers and Acquisitions, one of the most attracted subjects is that, for those shareholders, whether Mergers and Acquisitions can bring profits. And how does the market react to the event, and how does the benefit of stocks change. This article is base on these aspects.The first part is description of the environment and meaning. We retrospect the five important stages of the annexation and reorganization waves in America, and also retrospect the development history of those events happened in Chinese market.The second part is literature review. We list those papers on effect study.The third part is mainly the introduction of how to use the studying manner event study, and defining those terms used in the paper.The fourth part is about these data used in paper. It introduce how choose data and the way to deal with it. At last, it shows the result.The last part is the conclusion.And according to the fourth and the fifth parts, we adopt that those events of Mergers and Acquisitions happened in 2004, and calculate the abnormal return and the cumulative average abnormal returns. We find that the result show that there is a strong change of car before the information notice. So we suspect that it excites the insider trading. We use two indexes: announcement effect and the radio of ex-car and the maximum value of car during the whole period. And in the end, we can see all the results give the evidence of insider trading.
Keywords/Search Tags:Mergers and Acquisitions, Event Study, Announcement Effect, Insider trading
PDF Full Text Request
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