DO WE IDENTIFY SYNERGIES IN PUBLIC MERGERS/ACQUSITIONS: BEFORE AND DURING THE ECONOMIC CRISIS

Oana Resceanu
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Oana Resceanu: Academy of Economic Studies FABBV

Annals of University of Craiova - Economic Sciences Series, 2011, vol. 1, issue 39, 110-117

Abstract: The aim of mergers and acquisitions is to create wealth for the shareholders and usually this is accomplished through synergistic expectations. However the evaluation and identification of synergies in mergers and acquisitions is one of the important issues in Corporate Finance. In this paper it is tested the markets reaction to a sample of 61 mergers/acquisitions in the European pharmaceutical sector, realized between end 2004 and beginning 2010- prior and during the economic crisis. In the study it has been analyzed the impact of the announcement of the deal on the stock price evolution of the acquiring companies for which it was used the event study technique. The results show the differences between the markets reaction before the economic crisis and after the economic crisis.

Keywords: mergers and acquisitions; synergies; valuation; public offers (search for similar items in EconPapers)
JEL-codes: C12 G15 G34 (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:aio:aucsse:v:1:y:2011:i:39:p:110-117

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