Synergies & Stocks: An Analysis of Mergers and Acquisitions on long-run Stock performance

This paper seeks to analyze the financial impact of Mergers ad Acquisitions in the United Sates stock market. Previous work has found mixed results based on the time period, payment method, deal size, etc. I select recent data (2007-2017) from the Bloomberg terminal and employ an ordinary least squares regression. 70 merger companies, along with 70 similar control companies are selected for a bootstrapping approach. I look at the merger impact based on 3 channels for 1 year, 1 quarter and 1 month. The data illustrates that M&A does not lead to significant negative nor positive abnormal returns.