När marknaden får beskedet - En eventstudie av marknadsreaktion, betalningsmedel och institutionellt ägande vid företagsförvärv

Sammanfattning

Title: When the Market Receives the News – An Event Study of Market Reaction, Payment Method and Institutional Ownership in Mergers and Acquisitions Seminar date: 15 January 2026 Course: FEKH89, Bachelor Thesis in Corporate Finance, Undergraduate Level, 15 credits Authors: Nils Arvidsson, André Mellqvist & Emilian Rehnström Advisor: Elias Bengtsson Key words: Abnormal return, short-term market reaction, corporate acquisitions (M&A), method of payment, institutional ownership. Research questions: Does the announcement of M&A affect the bidder´s abnormal return in the short run? Does the short-term market reaction differ depending on whether the acquisition is financed with cash or shares? Does the level of institutional ownership affect the bidder´s abnormal return in the short run in connection with an acquisition? Purpose: To examine bidder´s short-term market reaction to M&A announcements and to analyse how the method of payment and institutional ownership influence short-term CAR. Methodology: The study is based on an event study to calculate CAR for bidders within an event window around the announcement date. T-tests are conducted in to ensure any potential relationships. A multiple linear regression analysis (OLS) is then conducted in which CAR is explained by the method of payment, institutional ownership, and control variables. Theoretical perspectives: The study builds on the efficient market hypothesis, signalling theory, agency theory and risk theory, as well as prior empirical research on the market reactions to corporate acquisitions linked to the method of payment and institutional ownership. Result: The study indicates a positive market reaction around acquisition announcements. Payment method shows no significant effect on CAR in the regression model. Institutional ownerships show a negative relationship with CAR. Conclusions: The study shows that the market reacts to M&A announcements in the short run and that ownership structure is associated with variation in CAR, while the importance of the method of payment is less clear when other factors are considered.