Successful Managers? a Study on US Corporate Restructuring Returns

Abstract

This study examined the long-term performance of corporate restructurings in the United States between 2000 and 2015 in response to the absence of abnormal returns found in prior literature. The significance of this study stems from the intricate nature and expenses associated with transactions that impact stakeholders, thereby increasing their risk exposure. The analysis focused on completed mergers and acquisitions (M&A) deals and spin-offs within the US, assessing their performance over three and five years after the transaction, building upon earlier research. By considering the evolving market conditions, this thesis contributes to the existing knowledge on restructuring by employing an up-to-date sample. The findings of this study revealed no statistically significant abnormal returns during the three- or five-year periods following M&A and spin-off activities, indicating that bidders did not attain substantial abnormal returns from such activities. Consequently, these results suggest that other motives than synergy creation might be responsible for the M&A.