Mergers and Acquisitions by Large Financial Investors in Germany, Austria and Switzerland

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Type and Duration

WTT, September 2007 until March 2008 (finished)

Coordinator

Chair in Business Administration, Banking and Financial Management

Main Research

Wealth Management

Field of Research

Banking and Finance

Description

In this empirical project, we present empirical evidence on the gains and losses to target firm shareholders, focusing our analysis on the value effects from M&A transactions by financial investors. The main objective is whether M&A transactions by financial investors have a significant impact on the value of their target companies and if these value effects differ systematically from the value effects of target companies acquired by industrial companies. To conclude we can underline that from the perspective of the capital market - this is equivalent to shareholders of the target company - an M&A transaction of a financial investor is equivalently valued as an M&A transaction by an operating firm. This is an important result which should be taken into consideration by economic policy makers and regulators.

Principal Investigator

Prof. Dr. Marco J. Menichetti

Project Collaborator

Dr. Marcel Vaschauner, MBA