| dc.description.abstract | Mergers and acquisitions offer benefits to companies seeking to redefine their
position in the market. By incorporating new capabilities into their products,
companies can quickly expand their market presence and alter their market position.
When a merger or acquisition is announced, it discloses significant information
about the deal, which can be used to assess the stock market's reaction to the news.
The objective of this study is to analyze the impact of merger and acquisition
announcements on the stock prices of acquiring companies (domestic companies)
on Ho Chi Minh Stock Exchange (HOSE). The study employs an event study
method, utilizing secondary data for analysis. The impact is measured through
abnormal returns (AR), cumulative abnormal returns (CAR), average abnormal
returns (AAR), and average cumulative abnormal returns (CAAR) to determine the
effect of the event on the sample's stock price. The research findings indicate that
stock prices undergo immediate changes following the announcement of mergers
and acquisitions. However, in some cases, stock prices decline after the
announcement, while in other cases, they increase. Several listed companies have
observed exceptional returns. However, for certain companies, this announcement
does not have a significant impact on their equity and earnings. The study reveals
that merger and acquisition announcements significantly affect cumulative total
stock returns for different acquiring companies before and after the announcement.
The study reveals that merger and acquisition announcements significantly affect
cumulative total stock returns for different acquiring companies before and after the
announcement. This research provides valuable knowledge for Vietnamese
investors to make informed decisions when faced with any M&A announcement in
the Vietnamese stock market. | en_US |
