Delaney, F T and Wamuziri, S C (2004) The impact of mergers and acquisitions on shareholder wealth in the UK construction industry. Engineering, Construction and Architectural Management, 11(1), pp. 65-73. ISSN 0969-9988
Abstract
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 |
|---|---|
| Uncontrolled Keywords: | acquisitions and mergers; construction industry; shareholder value analysis; United Kingdom |
| Index terms: | construction firm, construction company, value analysis, United Kingdom, financial performance, merger, acquisition, motive, construction industry |
| Subjects: | psychology, organization, business, industry analysis, financial analysis, business analysis, Geography |
| Topics: | Human Resources, Geographical Context, Research Practice, Business Strategy, Cost Management |
| Descriptive scope: | 4 PCTA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here