According to the results, M&A announcements generated positive
average actual return over (-60, +60) for both target and acquirer banks in all
of the scenarios. Average actual return of acquirers' shareholders in M&A
announcements of all-cash offers are higher than for all cash-stock offers,
but Average actual return of targets' shareholders in M&A announcements
of all-eash offers are lower than for all cash-stock offers.
This study has also found some interesting facts for international deals.
For acquirer banks, the average actual return of acquirers 'shareholder in
domestic and cash payment M&As are lower than for cross-border M&As,
but average actual return of acquirers' shareholder in domestic and cash and
stock payment M&As are higher than for cross-border M&As.
For target banks, the average actual return of targets' shareholder in
domestic M&As are higher than for cross-border M&As in both cash and
cash-stock payment.
This study has analyzed the actual returns due to some reasons such as
data validity. Uniqueness and focusing on a relatively new aspect of M&A
deals has been considered as one of the main motivations for analyzing the
actual return rather than the abnormal return. The majority of the previous
researches have included the abnormal return in their studies, but it's very
rare to find a specific research considering the actual return.
But, for the future researches, it's recommended to use the abnormal
return in the same scenarios in order to compare the results. It's also recommended to study the other countries from Europe, Afi-ica and Asia as
well.