Article Title
Is Tech M&A Value-Additive?
Abstract
Given rising M&A deal volume across all high-tech subsectors, the ability to measure post-acquisition performance becomes critical. Despite this growth, the relevant academic literature is severely lacking (Kohers and Kohers 2000). Using an event-study approach, I find that acquirers and targets both realize statistically significant day-0 abnormal returns (1.23% [p<0.1] and 8.1% [p<0.01], respectively). As positive stock returns signal positive growth prospects in a semi-strong efficient market, AR regressions found that firms' technological relatedness, deal financing, purchase price premiums, and the relative book to market ratio, explained most variance. Overall, high-tech transactions are value-additive for both targets and acquirers.
Recommended Citation
Deshmukh, Ani
(2012)
"Is Tech M&A Value-Additive?,"
Undergraduate Economic Review: Vol. 9:
Iss.
1, Article 3.
Available at:
https://digitalcommons.iwu.edu/uer/vol9/iss1/3
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