Some Empirical Evidence on the Relationship Between Acquisitions, Disposals and the Stock Market

Authors: 
Cernat-Gruici, Bogdan
Publication date: 
2009/09/01
JEL codes: 
G30 - General, G34 - Mergers; Acquisitions; Restructuring; Corporate Governance.
Abstract: 
Based on empirical studies and theoretical evidence the paper investigates the relationship between inward and outward acquisitions and disposals in the UK and the UK stock market described by the FTSE all-share index. By using the Granger causality test for both the numbers and value of acquisitions and disposals the research results suggest that for the market and period considered, one way relationships are present.
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