Market Reactions to M&A Announcements During the COVID-19 Crisis: Evidence from U.S. Acquirers
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2025-08-27
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en
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This thesis investigates whether the COVID-19 pandemic altered investor reactions to U.S. merger and acquisition (M&A) announcements. Employing an event study and regression framework on a large sample of U.S. acquiring firms, the analysis identifies a statistically robust “pandemic premium” in abnormal returns. This premium is concentrated on the announcement day and persists in short- and medium-term event windows, indicating that investors evaluated M&A activity more positively under systemic uncertainty. Cross-sectional tests highlight valuation discipline as the central driver: discounted acquisitions were rewarded. By contrast, firm fundamentals such as leverage, liquidity, and market-to-book ratios were largely insignificant and no systematic sectoral differences emerged. The study provides new evidence on how mergers and acquisitions are assessed during crisis periods.
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Faculteit der Managementwetenschappen