The impact on short-term performance of horizontal mergers and acquisitions

Model: Y =

Y : cumulative abnormal returns (CARs)

X1: horizontal and vertical

Xi: size, market to book value, public or private firms

 

 

 

The literature review should provide the theoretical framework within which you will be developing your hypotheses. That means that your hypotheses should be a product of your critical evaluation of the literature review rather than mere recycling of the previous literature. The critical evaluation will lead you to formulate solid hypotheses and thus submit a solid work. It should have logical sections, include relevant literature, and avoid generalities. Also keep in mind that one main hypothesis is enough. You do not need to overcomplicate your dissertation.

3. The data and methodology part should be seen as the tools that will let you test the hypotheses developed in the literature review. It is a very important part as a solid methodology will provide a good test for your hypotheses. It would be a pity if you develop a good hypothesis but not back it up with a good methodology part.

 

Those two parts (literature review and data & methods) are the most important part in a dissertation as they layout the foundation of a good quality (i.e., hypotheses) and valid (i.e., data & methods) dissertation. A sound hypothesis with a robust way of testing it shows good understanding and is the first big step towards a good mark. These parts are therefore the most difficult ones and you should spend a lot of your time developing them. If you get these parts right then you will be aiming for a high mark. Please spend as much time as necessary to feel confident about your work. The more you work on it the better it becomes.

 

Regarding the sample ahead of our third meeting.

 

Attached I have the definitions from Thomson One

1. Definitions marked with yellow highlighter are some basic variables that could be used in the Search List. This will give you a general sample.
2. Percent of shares held at transaction should be set normally under 10%
3. Percent of shares owned after transaction should be set normally above 50%
4. Deal value should be set normally higher than 1 million
5. Acquirer market value 4 weeks prior to announcement should be normally set above 1 million
6. Form of the deal should normally include merger, acquisition, and acquisition of assets.
7. These figures are vastly populated in the literature of M&As!!!

 

Make sure you go through all variables and steps in detail.

 

If you are using cumulative abnormal returns (CARs) as your dependant variable (Y) in your regressions, then please see my points below:

1. For those who use US sample you should use WRDS and more specifically Eventus and then Cross-Sectional Analysis- Daily. You need to read what exactly you need to do. All information you require is there.