
Investigation Into The Impact Of Merger And Acquisition Activities On Acquiring Companies (2008)
The
primary focus of this research study is to investigate the impact of M&A
activities on the shareholders of acquiring companies, by examining M&A
that occurred in the UK Pharmaceutical sector in the period 2002-2006. To date
most of the available knowledge on M&A comes from researches on US markets,
with little research on UK markets. With references to M&A activities in
the pharmaceutical sector, existing empirical literature tend to cluster
exclusively on the US market or European market. This research attempts to
broaden the scope of existing literature by going beyond the US and focusing on
the UK.
This
research aims to:
- Critically
evaluating if the shareholders of acquiring companies experience wealth effects
as a result of M&A.
- Replicate
test that have been done on US data, to see whether similar result emerge for
the UK. Each countries result may be unique because of different organizational
and regulatory conditions. On the other hand similar results may occur if the
market for corporate control is reasonable competitive in both countries and
robust to definite institutional distinction.
- Evaluating
the impact of merger announcements on acquiring firm’s stock price using the UK
Pharmaceutical sector.
20,000
words – 116 pages in length
Excellent
use of literature
Outstanding
in depth analysis
Excellent
use of financial and accounting models
Outstanding
piece of work
Chapter
One
Introduction
Aims
Of The Research
Scope
And Limitation Of The Dissertation
Pharmaceutical
Industry
Structure
Of The Dissertation
Overview
Definition
Of Key Terms
Types
Of Mergers And Acquisition
Regulatory
Bodies Involved In Takeovers And Mergers In The UK
Chapter
Two
Literature
Review
Distinction
Between Mergers And Acquisition
Motives
behind mergers and Acquisition
Growth
Synergy
Motive
Taxes
Motive
Managerial
Motive
Diversification
Motive
Efficiency
Driver
Of Mergers And Acquisition
Globalization
Deregulation
Cost
of finance and stock market
Technological
Advancement
Drivers
of M& A in Pharmaceutical Sector
Mergers
and Acquisition Trends
Effect
of Mergers and Acquisition on Shareholder’s Value
Effect
of Mergers and Acquisition in The Pharmaceutical Sector
Reason
For Positive or Negative Merger and Acquisition Effect on Shareholders Value
Summary
Chapter Three
Methodology
Research
Method
Research
Philosophy And Approach
The
Even Study Approach
Assumptions
Of The Event Study Method
Procedure
When Using The Even Study Approach
Limitation
of the Event Study Approach
Market
Model Methodology
Sample
Selection/Design
Chapter
Four
Findings
and Analysis
Abnormal
Returns (Residual)
Cumulative
Abnormal Returns
Chapter
Five
Conclusion
Comparing
Research Findings And Earlier Literature
Summary
Reliability
and Validity of research work
Limitation
And Suggestions For Further Research
Reflective
Writing
References
Appendix
Section
Appendix
1: Abnormal return for the Acquiring firm and the Average abnormal return for
each day in the event window
Appendix
2: Estimation Of α And β For Cambridge Antibody Tech Group
Appendix
3: Abnormal Return Calculation For Cambridge Antibody
Appendix
4: Estimation Of α and β For Vernalis
Appendix
5: Calcualtion Of Abnormal Return For Vernalis
Appendix
6: Estimation Of α and β For Boots
Appendix
7: Calculation Of Abnormal Returns For Boots
Appendix
8: Estimation Of α and β For Ventura
Appendix
9: Calculation Of Abnormal Returns For Vectura
Appendix
10: Estimation of α and β For Celltech
Appendix
11: Calculation of Abnormal Returns for Celltech
Appendix
12: T- Stat Calculations
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