Der Erfolg von Unternehmenszusammenschlüssen

Summary

The analysis of stock market reactions is commonly used to measure stockholder returns from mergers and acquisitions. This paper presents empirical evidence from the Federal Republic of Germany. The results for 110 merging firms show negative results for 60% of them during the period of study (24 months before and after merger). Stockholders had the highest losses of 11 % in return 15 months after the merger. Later on a slightly positive trend could be surveyed.

By dividing mergers according to their way of diversification it was found out that acquiring firms merging for product extension performed best whereas pure conglomerates had the worst results. Firms that are frequently involved in mergers gain from their mergers while occasionally merging firms loose value when engaging in mergers. Negative abnormal returns have been minor for small acquisitions than for large ones.