The Valuation Effects of Mergers and Acquisitions: Evidence from the JSE Securities Exchange South Africa

Posted: 23 May 2008

See all articles by Tania Wimberely

Tania Wimberely

affiliation not provided to SSRN

Minga Negash

Metropolitan State University of Denver; University of the Witwatersrand

Date Written: 2003

Abstract

This research determines whether South African firms engaging in M&A activity generate persistent monthly positive abnormal returns in the 36 months after the announcement of the event. The sample consisted of 299 M&A transactions (announced between 1988 and 1998). The benchmark was a control portfolio of industrial firms matched with size and book to market value ratio. The abnormal returns were calculated on an equally weighted basis and using calender time abnormal return and cummulative abnormal returns methods; both of which produced negative results.

Keywords: mergers and acqusitions, long term effect, Johannesburg stock exchange

Suggested Citation

Wimberely, Tania and Negash, Minga, The Valuation Effects of Mergers and Acquisitions: Evidence from the JSE Securities Exchange South Africa (2003). Available at SSRN: https://ssrn.com/abstract=1134263

Tania Wimberely

affiliation not provided to SSRN

Minga Negash (Contact Author)

Metropolitan State University of Denver ( email )

Student Success Building
890 Auraria Pkwy #310
Denver, CO 80217
United States

University of the Witwatersrand

1 Jan Smuts Avenue
Johannesburg, GA Gauteng 2000
South Africa

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