The impact of merger on stockholder risk

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buir.advisorAydoğan, Kürşat
dc.contributor.authorAlpar, Gamze
dc.date.accessioned2016-01-08T20:09:20Z
dc.date.available2016-01-08T20:09:20Z
dc.date.issued1991
dc.departmentDepartment of Managementen_US
dc.descriptionAnkara : The Department of Management and Graduate School of Business Administration of Bilkent Univ., 1991.en_US
dc.descriptionThesis (Master's) -- Bilkent University, 1991.en_US
dc.descriptionIncludes bibliographical references leaves 84-91.en_US
dc.description.abstractThe main purpose of this study is to investigate empirically the impact of merger on stockholder risk. Mergers between LSE firms during the period 1983~1986 are examined. The literature provides three major hypotheses concerning merger and risk. These are tested to see whether the magnitude and the direction of change in risk following mergers is compatible with what is hypothesized. To gai further insight, the discrepancy between the systemati risk of the merged firm and that predicted by CAPM modelled using several market variables.Market model employed to estimate three measures of risk: Systemati unsystematic, total. n Given the limitations of the sample and research design, mergers are found to be associated with an increase in systematic risk over what is hypothesized. The absolute difference of premerger systematic risks of acquiring and acquired firms and financial leverage of the merged firm are found to explain the discrepancy between the actual and hypothesized level. On the contrary to systematic r-isk, unsystematic risk has not changed relative to premerger value of the acquiring company. The findings show that on average market takes a riskier view of the merged firm than its components and risk reduction may not be a valid rationale for mergers. Stockholders must question the mergers justified on the basis of risk reduction alone, since they can achieve the same reduction in unsystematic risk by portfolio diversification and mergers do not provide any benefits in terms of systematic risk reduction.en_US
dc.description.degreeM.B.Aen_US
dc.description.provenanceMade available in DSpace on 2016-01-08T20:09:20Z (GMT). No. of bitstreams: 1 1.pdf: 78510 bytes, checksum: d85492f20c2362aa2bcf4aad49380397 (MD5)en
dc.description.statementofresponsibilityAlpar, Gamzeen_US
dc.format.extentiii, 91 leavesen_US
dc.identifier.itemidBILKUTUPB007715
dc.identifier.urihttp://hdl.handle.net/11693/17334
dc.language.isoEnglishen_US
dc.publisherBilkent Universityen_US
dc.rightsinfo:eu-repo/semantics/openAccessen_US
dc.subjectMergeren_US
dc.subjectAcquiring firmen_US
dc.subjectP/E gameen_US
dc.subjectPortfolio еffесten_US
dc.subjectRisk reducing effecten_US
dc.subjectUnsystematic risken_US
dc.subjectMarket Modelen_US
dc.subjectOLSen_US
dc.subject.lccHD2746.5 .A47 1991en_US
dc.subject.lcshConsolidation and merger of corporations.en_US
dc.subject.lcshDividends.en_US
dc.subject.lcshPrivate companies.en_US
dc.subject.lcshCorporate reorganization.en_US
dc.subject.lcshCorporations--Growth.en_US
dc.titleThe impact of merger on stockholder risken_US
dc.typeThesisen_US

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