Empirical investigation of the impact of mergers and acquisitions on stock prices of Greek companies operating in the Greek Stock Exchange

Abstract

This study examines the impact of mergers and acquisitions on stock prices of Greek companies operating in the Greek Stock Exchange. The empirical findings, using the event study methodology consisting of 106 bidders and 56 targets companies during the period 1998-2006, suggest that mergers and acquisitions in Greece do create value for the shareholders, as it is
reflected by the abnormal returns of their stock prices. However, these abnormal returns differ significantly from the equivalent returns presented in the literature simply because the Greek stock market is small and not competitive enough.

JEL Classifications: C22, C23, G34