Proposal On

What determines the wealth effects of mergers and acquisitions for the shareholders of bidders?

By

CHAPTER01: INTRODUCTION

The introduction is the first chapter of this research. The introduction section will present a brief introduction of the study along with the outline of the dissertation. The research question will also be presented in this section. Every research work is required to consider ethical considerations. The ethical considerations of this research will also be presented in the introduction.

Outline of the Study

This dissertation is divided into five chapters. These chapters include introduction, literature review, methodology, analysis, and conclusion.

The first chapter of this research is the introduction. The first chapter will present an overview of the topic. The second chapter is the literature review. The literature review section will present a review of different studies that have been conducted on the relevant topic. The literature review section will be helpful in identifying variables relevant to the study.

The third chapter is the methodology. This chapter will present the methodology that will be adopted to carry out this research. In addition, the methodology section will also include data collection method that will be used for this research. The fourth chapter will present findings and analysis. The fifth chapter will conclude the study.

Background of the Study

Mergers & Acquisitions (M&A) have a major impact on business processes of a firm. The phenomenon of mergers and acquisitions was first observed in the United States. However, with the passage of time, it is happening all around the world.

There has been an outburst in Mergers and Acquisitions in Europe. The increase in the activities of M&A took place in the United Kingdom in 1920s. It was the time when there was an increase in the acceptance of mass production techniques. The use of advanced mass production techniques resulted in an increase in vertical integration. The second wave of mergers and acquisitions in the region began in 1960s. This surge was a response towards internationalization of the global economy. The surge of globalization increased the pressure on the region to create larger firms. The needs for larger firms increased with an increasing competition in the global market. The market of the United Kingdom was facing competition from different countries particularly US and Japan.

The first great wave of mergers in Europe came in the 1980s. However, at the same time, the United Kingdom experienced the third wave of mergers and acquisitions. In Europe, mergers and acquisitions increased in 1990s after the introduction of a Single Market Programme. The development of the European Monetary Union resulted in the development of deregulation, privatization as well as growth in the technological sector.

In the 21st century, there has been an increase in M&A activities in Europe. The recent increase has raised the question of the value for shareholders. There are diverse studies that demonstrate that shareholders get wealth benefits from M&A. The impact of mergers and acquisitions on shareholders is in the form of abnormal returns. The debate whether shareholders of bidding companies get ...