Merger and acquisition market: value creation for merging companies

The main aim of the dissertation is to identify the opportunities for increasing the value created by mergers and acquisitions for merging companies. An event study was conducted in the dissertation pursuant to case study methodologies described by Brown and Warner (1985), MacKinley (1997) and Bruner (2004), analyzing the impact that mergers and acquisitions have on prices of shares of the acquiring companies, the type of the situation group (moderators) and the effects on merger and acquisition results. EU-28 merger and acquisition market in the period of 2004 – 2017 has been analyzed. According to the research, mergers and acquisitions increase the value of the acquiring company. Shareholders of the acquiring company incur a statistically important increase of the share price of 7.08% over the three-day period around the transaction date. The model developed based on the conducted empirical study explains the share price change around the transaction announcement date of more than 60%. Results of the empirical research allows to identify that announcement M&A transactions is an activity that increases the value of the companies. In addition, based on an empirical study, differences in the yield generated by the announcement of M&A transactions can be explained by the characteristics of the transaction, the characteristics of the companies, and the differences in the countries in which the M&A transactions are carried out. Results of the empirical analysis allow managers of companies, economists, politicians and other stakeholders to understand the effects of M&A transactions