| dc.description.abstract | The following paper investigates 296 mergers and acquisitions in Latin America,
which were announced between 2001 and 2019, in order to reveal the impact of
temporal factors, geographical factors, economical factors, the transaction volume
and the payment method on the development of shareholder value of the acquiring
company in the short-term around the announcement date of the transactions. As the
proposed event study methodology shows the influence of temporal factors is
limited. The same holds for the payment method. Geographical factors, economical
factors and the transaction volume, on the other hand, appear to have a significant
effect on the valuation of the acquiring firm after conducting a merger or acquisition.
Firstly, the picture of improved results of domestic transactions arises. Secondly,
mergers and acquisitions which aim to diversify operations appear to provide better
results than those consolidating the operational focus. Thirdly, it can be shown that
larger transaction volumes tend to destroy shareholder value rather than increasing it.
Hence, it becomes crucial for companies, which plan to conduct a merger or
acquisition, to consider these factors and implement a suitable transaction design
which is in line with the interest of shareholders. | |
