Computer Industry Mergers and Acquisitions: Determinants of Short-Term Value Creation
Degree type
Graduate group
Discipline
Subject
acquisitions
computer
Business
Corporate Finance
Marketing
Funder
Grant number
License
Copyright date
Distributor
Related resources
Author
Contributor
Abstract
We examine cumulative abnormal returns of mergers and acquisitions in the computer industry over a twenty-day event window surrounding merger announcement. Our findings indicate that acquirers, on average, are generally not able to capture statistically significant cumulative abnormal returns over this event window, while targets are able to capture large, positive statistically significant cumulative abnormal returns. We find that the premium paid by acquirers and in turn received by targets possesses explanatory merit with regards to both acquirer and target cumulative abnormal returns. Additionally, our results reveal that when improvement of marketing capabilities is a stated rationale for pursuing a merger, it has statistically significantly explanatory power of target cumulative abnormal returns.