Mergers and Acquisitions in Brazilian Higher Education Companies

Finance & Economics Review

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Title Mergers and Acquisitions in Brazilian Higher Education Companies
Creator Silva, Alan Willame de Souza
Junior, Tabajara Pimenta
Soares, Mara Alves
Gaio, Luiz Eduardo
Ambrozini, Marcelo Augusto
Subject Mergers and Acquisitions; Abnormal Returns; Private Higher Education, Brazil.
Description Purpose: The objective of this study is to detect and measure the occurrence of extraordinary returns to the shareholders of private higher education companies, listed on the Brazilian stock market, B3, when mergers and acquisitions occur.
Methods: This study uses the Event Study technique on process data from 46 merger and acquisition events, that occurred in the period of 2007- 2015, involving the three main Brazilian private higher education companies, and applies the Z-statistic to test the accumulated standard abnormal returns.
Results: Based on the results, it is possible to affirm that the presence of abnormal returns was not detected after merger and acquisition events. Events of this nature do not promote changes in the short-term value of the company, in the cases of large and publicly traded Brazilian private higher education companies.
Implications: The announcement of a merger or acquisition process has wide repercussions in the media and attracts the attention of investors that aims to gain abnormal earnings from anticipated post-merger value creation. This study showed that the potential gain in value does not always occur or is reflected in the stock prices of the companies involved, in the short term.
Publisher Research & Innovation Initiative
Date 2021-04-24
Type info:eu-repo/semantics/article
Peer-reviewed Article
Format application/pdf
Source Finance & Economics Review; Vol 3 No 1 (2021): Finance & Economics Review; 23-37
Language eng
Rights Copyright (c) 2021 Alan Willame de Souza Silva, Tabajara Pimenta Junior, Mara Alves Soares, Luiz Eduardo Gaio, Marcelo Augusto Ambrozini

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