Self-Organizing Maps to Analyze Value Creation in Mergers and Acquisitions in the Telecommunications Sector

Julio Navio, Jose Mª Martinez-Martinez, Alberto Uruena, Juan J. Garces and Emilio Soria

A chapter in Emerging Issues in Economics and Development from IntechOpen

Abstract: A great effort has been made in recent years to refine the study methods that emerged in the 1990s to assess long-term abnormal returns in the stock markets as a way to evaluate the value creation or destruction of merger and acquisition (M&A) in the sector of telecommunications. It is regularly addressed in generic merger and acquisition studies, with a short-term time horizon or just with a qualitative focus. In this work, we use a visual data-mining tool, Self-Organizing-Maps (SOM), to analyze mergers and acquisitions in telecommunications sector. The relationship among variables influencing the M&A was only observed due to the capabilities of the visual neural map method that allow to relate variables, which is not possible with other classical methods. In this work, the relationship obtained with the SOM linking M&A language, M&A cross-border, and size of the acquiring company is an important result.

Keywords: Self-Organizing Maps; data; merger & acquisition; abnormal returns; telecommunications (search for similar items in EconPapers)
JEL-codes: F10 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ito:pchaps:118149

DOI: 10.5772/intechopen.68757

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