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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

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I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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Abstract

We analyze a comprehensive set of mergers and acquisitions from SDC data from 1992 through 2009. We do not impose common restrictions such as excluding private bidders, small targets, or deals without a deal value. We show a broader scope of mergers and acquisitions activity than that implied in the literature, which generally oversamples larger deals involving public firms. Further, some of our results differ from the extant literature. For example, the finding that mergers occur in waves is attenuated with a greater presence of smaller and/or non-public firms. Also, acquirers gain in most takeovers despite a threefold decline over the sample period in acquirer returns.Lastly, in this paper we tried to show that the enormous majority of organizations listed on CRSP take part in the market for group control and that this market is supple in spite of the wide economic fluctuations. In this research, we found that almost that 73 percent participate in mergers and acquisitions and do so quite regularly. In addition, once we believe repeatedly deleted deals, M&A doings are best explained as chief and invasive.

Table of Contents

CHAPTER 1: INTRODUCTION1

Summary of evidence on waves and implications for research1

Daily clustering of mergers and acquisitions2

Mergers and Acquisition in different sectors3

Cross Border Mergers3

CHAPTER 2: LITERATURE REVIEW4

Mergers and Acquisitions5

Merger5

Mergers are specified as following types:5

Acquisition6

What motivates forms to undertake cross-border acquisitions?7

Effect of Mergers and Acquisitions on Banks12

1) Factors Influencing Acquisitions:18

2) Does acquisition improve targets performance?20

3) Post acquisition performance:22

4) Influence of host or home country characteristics:24

Short-run and Long-run effects of takeover26

Wealth Effects to Acquirers28

The Empirical Evidence28

CHAPTER 3: METHODOLOGY30

Sample Size and Evidence on Mergers and Acquisitions30

Sample selection in studies of mergers and acquisitions30

SDC data31

Classifications of mergers and acquisitions34

Target screens35

Deal characteristics of U.S. and non-U.S. acquirers from 2002 to 200936

Characteristics of U.S. acquirers and their targets36

CHAPTER 4: RESULTS AND ANALYSIS38

Effects of data screens on sample size and other variables38

Effects38

Summary of definitions and effects of data screens on samples39

Merger Clustering And Waves40

Mergers and acquisitions over time by acquirer status (U.S. acquirers)42

Industry clustering of industries with the largest number of acquisitions from 2002 to 200942

Average Abnormal Returns to Acquirers Based on the Total Market Index43

Empirical Results and their Significance45

University analysis of acquiring bank's risk49

Robustness Tests50

A. Cross-sectional regression on risk changes after cross-border bank M&A50

Acquisition rates by day of the year from 2002 to 200953

Clustering of mergers and acquisitions and IPO waves53

Correlations between monthly frequencies of acquisitions and IPO listings from 2002 to 200954

Analysis of Abnormal Returns54

Deal characteristics by year54

Time-series changes in acquirer CARs and percentage of transactions financed with mostly ...