Do Acquirers Benefit from M&A’s? - : An Event Study on 517 Swedish M&A’s: 1998-2016

Sammanfattning: This thesis builds upon literature that for many decades have examined the possible wealth creation of M&A’s. We investigate the acquiring firms share value response to M&A’s performed by public acquirers active on the Swedish market in 1998-2016. Our research builds upon previously conducted studies depicting both positive- and negative returns. Furthermore, our study considers how M&A’s are affected by merger waves and their creation of hot and cold markets. Our sample consists of 517 acquisitions including both smaller and larger transactions. Through an event-study, we investigate how the share value reacts during an 11 day event window surrounding the announcement of an M&A. Our findings show predominantly positive abnormal returns disputing much of the previous M&A research. Additionally, because abnormal returns are present throughout the event window, our results indicate that the Swedish market does not operate at a strong level of efficiency. Our main contribution is providing a coherent view of M&A’s conducted in Sweden during nearly two decades. As well as, providing evidence that M&A’s create value for the acquirer.