Analysis of the effects of M&A announcements on stock prices. Performance and ESG Scores.
Author
Dicheva, Ivelina Ivanova
Term
4. semester
Publication year
2023
Submitted on
2023-06-03
Pages
72
Abstract
Denne kandidatopgave undersøger, om annonceringer af fusioner og opkøb (M&A) påvirker aktiekurser og efterfølgende finansiel performance, samt hvordan ESG-scorer relaterer sig til disse transaktioner. Analysen omfatter 100 børsnoterede virksomheder på tværs af 27 brancher og flere lande med både indenlandske og grænseoverskridende handler i perioden 2006–2023, hvor hovedparten er opkøb. Med en event study-tilgang måles abnorme afkast omkring annonceringsdatoen, og en supplerende ratiosanalyse vurderer ændringer i rentabilitet, likviditet, gearing og effektivitet efter M&A. ESG-scorer undersøges for de seneste fem år, da sammenlignelige data før 2018 i praksis mangler på grund af fravær af standardiserede rapporteringsrammer. Resultaterne peger på blandede kortsigtede markedsreaktioner ved annoncering, mens den langsigtede udvikling afhænger af succesfuld integration og strategisk tilpasning. Studiet belyser også variationer på tværs af brancher og transaktionstyper uden at drage generelle konklusioner for alle virksomheder.
This thesis examines whether merger and acquisition (M&A) announcements affect stock prices and subsequent financial performance, and how ESG scores relate to these transactions. The analysis covers 100 publicly traded companies across 27 industries and multiple countries, including both domestic and cross-border deals from 2006–2023, with most transactions being acquisitions. Using an event study, the study measures abnormal returns around the announcement date, complemented by ratio analysis to assess post-deal changes in profitability, liquidity, leverage, and efficiency. ESG scores are analyzed for the most recent five years due to the lack of standardized reporting before 2018. The findings indicate mixed short-term market reactions at announcement, while longer-term outcomes hinge on successful integration and strategic alignment. The study also explores differences by industry and deal type without claiming uniform effects across all firms.
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