 Shareholder Wealth Effects of Mergers and Acquisitions in the Telecommunications IndustryOlaf Rieck () and
Canh Thang Doan
A chapter in Telecommunication Markets, 2009, pp 363-394 from Springer Abstract: Abstract In the past 10 years, Telecoms operators frequently engaged in M&As with the objectives to grow bigger and achieve higher earnings. However, the question arises whether and under what conditions they have really been able to achieve these objectives. The aim of this research is to investigate M&As in the telecoms industry and analyze the conditions under which such M&As can be considered successful. In doing so, we employ the event study method, which traces immediate market reactions to M&A announcements and the corresponding shareholder value effects. We first apply the event study method to our full set of M&As to obtain a broad picture of the shareholder value effects of M&As in the telecoms industry. We then proceed by investigating specifically (1) whether the shareholder value effects depend on the degree to which M&As are driven by a service diversification strategy; and (2) whether the shareholder value effects depend on the M&As being driven by an international diversification strategy. Keywords: Abnormal Return; Event Window; Cumulative Abnormal Return; Telecommunication Industry; Standard Industrial Classification (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:conchp:978-3-7908-2082-9_21 Ordering information: This item can be ordered from DOI: 10.1007/978-3-7908-2082-9_21 Access Statistics for this chapter More chapters in Contributions to Economics from Springer |
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