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Open Access. Powered by Scholars. Published by Universities.®

2010

CMC Senior Theses

Consolidation and merger of corporations

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Full-Text Articles in Business

Analysis Of Acquirer Stock Performance In Mergers And Acquisitions In Alberta's Oil And Gas Industry, Harrison A. Zivot Jan 2010

Analysis Of Acquirer Stock Performance In Mergers And Acquisitions In Alberta's Oil And Gas Industry, Harrison A. Zivot

CMC Senior Theses

This paper develops a framework that analyzes how mergers and acquisitions in Alberta’s oil and gas industry affect stock prices. In this experiment, a multivariate regression is applied to several industry-specific variables to determine if they have impacts on the abnormal stock returns of acquirers. The results show that abnormal returns 5 days prior to the public announcement of the transaction are, in fact, driven by several industry-specific variables. However, the returns immediately after the M & A announcements are similar to previous research done in other industries. Acquirers’ gains 2 days after the announcement are essentially unaffected by the …


Do Investors View Excess Capacity As A Determinant Of Mergers And Acquisitions In The Pharmaceutical And Biotechnology Industry?, Jennifer M. Volk Jan 2010

Do Investors View Excess Capacity As A Determinant Of Mergers And Acquisitions In The Pharmaceutical And Biotechnology Industry?, Jennifer M. Volk

CMC Senior Theses

I examine investors’ reaction to the announcement of mergers and acquisitions in the pharmaceutical and biotechnology industry from 2002 to 2008. Over this period, investors anticipate the announcements, as demonstrated by the fact that the cumulative abnormal returns are not statistically significant. In addition, I test to determine the effect of excess capacity on investors’ reactions. From 2002 to 2004, investors do not recognize acquisitions as a response to excess capacity, as the excess capacity measures utilized have no effect on the size of the cumulative abnormal return. From 2005 to 2008, however, excess capacity measures have a positive effect …