The Relationship between Method of Pay-ment in Mergers and Acquisitions and GDP in The United States: An Empirical Study
Independent thesis Advanced level (degree of Master (One Year)), 20 credits / 30 HE creditsStudent thesis
This thesis investigate the long-run relationship between different method of payments and GDP by implementing the Johansen’s bivariate and multivariate cointegration test. Theory suggests that different merger waves were related to the movement of GDP and this was visually proven for these time periods. The empirical findings indicates that there is a strong relationship among different methods of payment during an eight year time period from 1997-2004 using the multivariate cointegration test. Findings also include a cointegration relationship between different type of M&A deals for a twelve year time period from 1997-2008. The bivariate test indicates strong relationship between GDP and cash, GDP and debt as well as GDP and shares, but only for the eight year time period. Further research is however necessary to identify which variables are related to each other and how much they affect each other individually.
Place, publisher, year, edition, pages
2014. , 39 p.
IdentifiersURN: urn:nbn:se:hj:diva-24040OAI: oai:DiVA.org:hj-24040DiVA: diva2:722822
Subject / course
IHH, Business Administration
Manduchi, Agostinomark, Bagley