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Title: Essays on mergers and acquisitions
Author: Gazzaz, Heba
ISNI:       0000 0004 5358 8741
Awarding Body: University of Essex
Current Institution: University of Essex
Date of Award: 2014
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This thesis contributes to behavioural finance literature of mergers and acquisitions (M&As) by investigating the psychological reference point, misvaluation and post abnormal return approaches using a unique UK dataset. The first substantive paper (chapter 2) examines the impact of past peak prices i.e. 52-week high on UK M&A activity, such as offer price, offer success, market reaction, and merger waves. It applies the methodology of Baker et al. (2012) and proposes a unique interpretation based on the various differences (regulatory framework, environmental factors, and other salient characteristics) between the US and UK markets. The results show that UK bidders are less prone to offering prices anchored to the last 52-week high than US bidders. The second substantive paper (chapter 3) explores new insights on (mis)market valuation. It provides empirical evidence on the relation between target misvalaution levels and some characteristics of UK M&As such as the offer premium, method of payment, market reaction, and offer success. It also combines the methodology of Baker et al. (2012) with that of Rhodes-Kropf et al. (2005). We established that misvaluation play an important role in UK M&A activities. Finally, the third substantive paper (chapter 4) contributes to the literature by providing empirical evidence on the winners' and losers' post-merger performances in a UK contested merger sample. It provides an important robustness test of the Malmendier et al. (2012) matching criterion and lays the foundation for exploring the differences between US and UK M&A markets. Moreover, it adopts the misvaluation disaggregation in Rhodes-Kropf et al. (2005). The results show that there is no significant difference between the winner's and loser's performances in the post-merger period. By tracking the winners' and loser' merger activities two years after completion, we found that both sets 'of firms prevented their stock from declining even more if had they not involved in merger activity.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available