Shareholder Wealth Effects of Mergers and Acquisitions in the Telecommunications Industry

  • Olaf Rieck
  • Canh Thang Doan
Part of the Contributions to Economics book series (CE)


In the past 10 years, Telecoms operators frequently engaged in M&As with the objectives to grow bigger and achieve higher earnings. However, the question arises whether and under what conditions they have really been able to achieve these objectives. The aim of this research is to investigate M&As in the telecoms industry and analyze the conditions under which such M&As can be considered successful. In doing so, we employ the event study method, which traces immediate market reactions to M&A announcements and the corresponding shareholder value effects. We first apply the event study method to our full set of M&As to obtain a broad picture of the shareholder value effects of M&As in the telecoms industry. We then proceed by investigating specifically (1) whether the shareholder value effects depend on the degree to which M&As are driven by a service diversification strategy; and (2) whether the shareholder value effects depend on the M&As being driven by an international diversification strategy.


Abnormal Return Event Window Cumulative Abnormal Return Telecommunication Industry Standard Industrial Classification 


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Copyright information

© Physica-Verlag Heidelberg 2009

Authors and Affiliations

  • Olaf Rieck
    • 1
  • Canh Thang Doan
    • 1
  1. 1.DoanNanyang Technological UniversityDoanNanyangSingapore

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