Does M&A create value for acquiring shareholders? Evidence from the Brazilian Market
Pumo, Girolamo (A.A. 2022/2023) Does M&A create value for acquiring shareholders? Evidence from the Brazilian Market. Tesi di Laurea in Advanced corporate finance, Luiss Guido Carli, relatore Raffaele Oriani, pp. 31. [Master's Degree Thesis]
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Abstract/Index
This paper investigates the performance of corporate takeovers in the context of Brazilian public acquirors, from the beginning of the 21st century to the most recent years. The study shows that, on average, Mergers and Acquisitions are expected to create value for the bidders around the announcement of a transaction, regardless of the historical period, with a significant improvement in returns after the financial crisis of 2008. Some of the takeovers’ characteristics that contribute to explain the share price performance of bidders are: i) the size of the acquiror, which negatively affects return; ii) Price to Book value, when high suggests an overvaluation of the target, leading to lower returns iii) Return on Assets (ROA), companies that experience higher profitability pre-transaction are more likely to experience positive returns; iv) relative size, the greater the size of the target compared to the bidder, the higher the returns. Overall, the evidence obtained represents a statistically significant sample that is consistent with some of the most relevant and recent academic studies around corporate takeovers, which relate the mentioned increase in returns to improvements in corporate governance.
References
Bibliografia: pp. 30-31.
| Thesis Type: | Master's Degree Thesis |
|---|---|
| Institution: | Luiss Guido Carli |
| Degree Program: | Master's Degree Programs > Master's Degree program in Corporate Finance, English language (LM-77) |
| Outstanding Thesis: | Department of Business and Management |
| Chair: | Advanced corporate finance |
| Thesis Supervisor: | Oriani, Raffaele |
| Thesis Co-Supervisor: | Torrisi, Alfio |
| Academic Year: | 2022/2023 |
| Session: | Extraordinary |
| Deposited by: | Maria Teresa Nisticò |
| Date Deposited: | 25 Jul 2024 15:26 |
| Last Modified: | 25 Jul 2024 15:26 |
| URI: | https://tesi.luiss.it/id/eprint/39428 |
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