Graduation Year
2019
Date of Submission
4-2019
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Murat Binay
Terms of Use & License Information
Rights Information
2019 Patrick C Thomas
Abstract
This study analyzes the impact of merger and acquisition financing method on buyer cumulative abnormal returns. The model builds on findings in previous literature by including deal structure variables, company variables, industry variables, time variables, and post-acquisition announcement return data from 2000 to 2018. The analysis does not find a statistically significant relationship between cash plus debt/stock financing and cumulative abnormal returns. However, significant coefficients for buyer and target industry suggest that deal structure varies and ultimately effects cumulative abnormal returns within specific industries. Additionally, significant results for buyer profitability and time variables provide insight on how the financial market interprets synergy realization and economic crises in relation to security valuation and the mergers and acquisitions market.
Recommended Citation
Thomas, Patrick, "Financing Method and Abnormal Returns in Corporate Mergers and Acquisitions" (2019). CMC Senior Theses. 2211.
https://scholarship.claremont.edu/cmc_theses/2211
