Posted: July 30th, 2015

empirical analysis

empirical analysis

Project description
Hi, there. You just need to finish a empirical analysis. This is guidance.
If you choose to do this assessment you are required to design and carry out an event study
that analyses the impact that the announcement of mergers and acquisitions (M&A) has on
the share prices of acquirer and target companies. You will find the relevant M&A data using
Thomson Banker, as instructed during the lecture.

Your aim is to analyse the impact of an M&A announcement on acquiring and target firms
separately, thus allowing you to compare the impact of M&A announcements on acquiring
vs target firms. The announcement dates should be restricted to 1st
January 2014 to 31st

December 2014.

You will need to read a synopsis of previous literature examining share price reaction
around M&A to fully understand how to set up your hypotheses and methods of enquiry
and should discuss the literature briefly in your report. Links to relevant papers will be put
on Blackboard. The marking grid for the empirical research is attached.

You need to find announcement data for 50 acquiring firms, and for 50 target firms (100 in
total). It should select target and acquiring firms from the same country i.e. UK.
You will need to conduct two separate searches for the M&A data on Thomson, one for
acquiring firms, and the second for target firms. You then need to gather the share price
data for your observations, along with the closing prices for an appropriate stock index, i.e.
for the UK it can be the FTSE all-share index, or for the USA the S&P 500 index.
You are asked to read guidance carefully and upload the outline for empirical analysis before you start to write this work. Once the owner confirm this outline is OK. Then we can start to write.
2. You are asked to ensure the authenticity and veracity of data for empirical analysis.