Browsing by Author "Koozi, Claudia"

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    An Analysis of Stock Price Reactions Influenced by Mergers and Acquisitions (M&A) in the healthcare industry
    (2024-07-04) Koozi, Claudia; Chau, Hanna; University of Gothenburg/Graduate School; Göteborgs universitet/Graduate School
    This paper aims to empirically test the impact of Mergers and Acquisitions (M&A) announcements on stock prices within the European market, focusing specifically on the healthcare industry from 2008 to 2023. Employing event study methodology, the stock price responses to M&A announcements are examined, particularly looking at cumulative abnormal returns (CAR) across various event windows to assess shorter-term and longer-term market reactions. The analysis reveals that M&A announcements generally result in positive CAR for acquiring firms across the two longer event windows ([-30, +30] and [-30, + 60]), indicating that the market views these transactions as beneficial in creating long-term value. Specifically, the CARs are statistically significant in these windows for acquiring companies, implying that the perceived benefits of M&As for acquirers materialise over time. In contrast, the reactions for target firms show minimal to no significant CAR, especially in shorter windows ([-1, +1] and [-5, + 5]), reflecting a more cautious or conflicting investor perception regarding the immediate benefits of M&A for these companies. The study contributes to existing literature by detailing the differential impacts of M&A on acquiring versus target firms and by highlighting the influence of event window length on investor reactions. It emphasises the complexity of M&A effects on stock prices, implying that while acquirers may benefit from strategic growth opportunities, the advantages for targets are not always distinct or realised in the short term.
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    Stock market response to unsustainable conduct within listed companies
    (2021-07-13) Kawal Kaur, Preet; Koozi, Claudia; University of Gothenburg/Department of Economics; Göteborgs universitet/Institutionen för nationalekonomi med statistik; University of Gothenburg/Department of Business Administration; Göteborgs universitet/Företagsekonomiska institutionen
    News spreads quickly in our rapidly innovative world, which has implications for companies when scandals are exposed to the public. In this report, we explore whether there is a connection between unethical actions and the reaction and publication of those acts in terms of environmental and social issues. More specifically, an event study is undertaken to determine if there is a stock market reaction to the public announcement of corporate environmental and social scandals. To see whether there is a correlation between the publication of the scandals and a shift in the share price, a t-test is used. In addition, the test is used to determine if there is a major reaction.When the news about the social scandals was released, the share price of the social scandals fell more than the environmental scandals, according to the report. These assumptions may be focused on the values and ethics of investors. A comparison may also be drawn from the fact that the average value of CAR has decreased over time, which can be explained by the increased focus on sustainability in general.