The impact of M&As on shareholders’ wealth : evidence from Greece
Date
23/03/2023Metadata
Show full item recordAbstract
This study aims to investigate the effect of mergers and acquisitions (M&A) on shareholders’ wealth. Additionally, this study investigates the impact of the economic crisis during 2007–2008 on the shareholders’ perceptions of gaining additional value from mergers and acquisitions. In this paper, a sample of 84 M&As from 2006 to 2015 in Greece are studied to investigate the effect on shareholders of bidder companies. We find significantly negative abnormal returns just before the announcement of M&A, which negatively affects the bidder firms’ value. It is also observed that after 2009 M&A cases decreased, maybe because of the crisis in Greece that changed the investors’ perception of a value-destroying event. Companies that engage in M&A activities during economic downturns tend to experience a decline in shareholder value. This could be due to various factors, such as increased uncertainty and risk associated with such activities during economic uncertainty. By understanding the potential impact of such activities on shareholder value, companies can make more informed decisions about whether and when to pursue M&A opportunities.
Citation
Giannopoulos , G , Lianou , A & Elmarzouky , M 2023 , ' The impact of M &As on shareholders’ wealth : evidence from Greece ' , Journal of Risk and Financial Management , vol. 16 , no. 3 , 199 . https://doi.org/10.3390/jrfm16030199
Publication
Journal of Risk and Financial Management
Status
Peer reviewed
ISSN
1911-8074Type
Journal article
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