Determinants of Shareholders Wealth Performance Based Study on Merging Companies

Abstract

Mergers and Acquisitions as a business strategies are widely used to increase the wealth of the shareholders and the corporate performance. Shareholders wealth may be inruenced by many factors such as the corporate performance, deal type, geographic location of the company and so on. The study is conducted with three main objectives of assessing the impact of merger announcements on merging companies' share prices, analyse the nature of shareholders' returns of the merging companies and assess the determinants of shareholders returns.