INSPIRING FUTURES

The impact of mergers and acquisitions on shareholder wealth in the UK construction industry.

Delaney, Frank T and Wamuziri, Sam (2004) The impact of mergers and acquisitions on shareholder wealth in the UK construction industry. Engineering Construction & Architectural Management, 11 (1). 65- 73. ISSN 1365 232X

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    Abstract/Description

    One of the primary motives behind any strategic corporate decision is to maximise shareholder value. Strategic decisions for UK construction firms are made with the objective of maximising the wealth of the company's shareholders. This paper investigates the financial performance of UK construction companies, which have been involved in construction related mergers and acquisitions and examines the impact of merger announcements on acquiring firms' and target firms' stock performance in the UK construction industry. It also examines abnormal share returns throughout a period surrounding the announcement of both successful and unsuccessful acquisition and merger bids. The overall results indicate that related construction mergers create wealth for shareholders of the target firms.

    Item Type: Article
    Print ISSN: 1365 232X
    Uncontrolled Keywords: Construction industry; UK; Strategic decisions; Mergers; Acquisitions; Share price; Movement of wealth;
    University Divisions/Research Centres: Faculty of Engineering, Computing and Creative Industries > School of Engineering and the Built Environment
    Dewey Decimal Subjects: 600 Technology > 690 Building & construction > 692 Auxiliary construction practices
    300 Social sciences > 330 Economics > 332 Financial economics
    600 Technology > 650 Management & public relations > 658 General management
    Library of Congress Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
    H Social Sciences > HG Finance
    T Technology > TH Building construction
    Item ID: 2023
    Depositing User: RAE Import
    Date Deposited: 17 Mar 2008 16:56
    Last Modified: 10 May 2013 15:26
    URI: http://researchrepository.napier.ac.uk/id/eprint/2023

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