[Government Policy Affect Merger and Acquisition of Cross-Border Automobile Industries]

By

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.

DECLARATION

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

In this research we analyzed a broad set of mergers and acquisitions through SDC data from the year 2002 through 2009-10. We do not enforce general restrictions such as excluding private financial bidders, small targets, or deals without a deal value. We show a wide scope of mergers and acquisitions activity than that implied in the literature, which usually over samples larger deals involving public organizations. In addition, some of our results vary from the extant literature. For example, the result that mergers occur in waves is attenuated with a greater occurrence of smaller or non-public organizations. Moreover, acquirers gain in most takeovers in spite of a threefold turn down over the sample period in acquirer returns. In this research we have a considerably larger sample than those found in previous M&A studies, which usually allows us to present data that are further representative of the distinctiveness of Mass and provide proof on the amount to which some conclusions of the prior literature hold true in the larger sample. The results of this research authenticate much of the earlier M&A work, but we in this research also provide facts that some conclusions from unrepresentative samples do not hold for Mass in general. In accumulation, we also reflected on some of the most fundamental definitions of M and A, dispute the difference between public and private transactions, also gave some course on the significance of bearing in mind in the feature the impact of sample selection on empirical analysis.

Key Words: Cross Mergers and Acquisitions, Gravity Equation, Euro. JEL Classification: F30, F36, F41, G11.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

TABLE OF CONTENTSV

CHAPTER 1: INTRODUCTION1

Background of the Study1

Problem Statement2

Daily clustering of mergers and acquisitions3

Mergers and Acquisition in different sectors3

Cross Border Mergers3

CHAPTER 2: LITERATURE REVIEW5

Mergers and Acquisitions5

Merger5

Mergers are specified as following types:5

Acquisition6

What motivates forms to undertake cross-border acquisitions?6

Effect of Mergers and Acquisitions on Banks12

Post acquisition performance:18

CHAPTER 3: METHODOLOGY20

SDC data21

Classifications of mergers and acquisitions23

CHAPTER 4: FINDINGS, DISCUSSION AND RESULTS25

Effects of data screens on sample size and other variables25

Effects25

Summary of definitions and effects of data screens on samples26

Merger Clustering And Waves27

Mergers and acquisitions over time by acquirer status (U.S. acquirers)28

Industry clustering of industries with the largest number of acquisitions from 2002 to 200929

Average Abnormal Returns to Acquirers Based on the Total Market Index30

Empirical Results and their Significance32

CHAPTER 5: CONCLUSION35

REFERENCES37

APPENDIX45

CHAPTER 1: INTRODUCTION

Background of the Study

Our evidence is consistent with earlier results that mergers cluster and occur in waves when we consider just publicly traded acquirers. However, the results differ when we use the larger sample including ...