The determinants of aggregate domestic merger activity for companies listed on the Johannesburg Stock Exchange

dc.contributor.advisorMacKenzie, Maxen
dc.contributor.emailichelp@gibs.co.zaen
dc.contributor.postgraduateSmith, Bevan Stephenen
dc.date.accessioned2013-09-06T13:48:59Z
dc.date.available2013-04-29en
dc.date.available2013-09-06T13:48:59Z
dc.date.created2013-04-25en
dc.date.issued2012en
dc.date.submitted2013-02-24en
dc.descriptionDissertation (MBA)--University of Pretoria, 2012.en
dc.description.abstractMergers and acquisitions remain a constant feature of both the local and international markets, but little is definitely know about what determinants of aggregate merger activityThe aim of this research report is to evaluate the dynamic relationship between a selected number of determinants and aggregate merger activity. We limited our selection of determinants to either macroeconomic or market factors, and limited our acquirers listed on the Johannesburg Stock Exchange.We defined aggregate merger activity using three measures, namely, quarterly deal frequency, quarterly deal value and a relative measure, which took the ratio of deal value over the JSE All Share Index. We utilised Gross Domestic Product, the Repurchase Rate, Consumer Price Index (CPI) and Producer Price Index (PPI) as our macroeconomic variables. Our market variables were the JSE All Share Index, the All Bond Index and the USD/ZAR Foreign Exchange Rate. Employing the appropriate data transformations, unit root, regression analysis and cointegration tests we were able to statistically test for the hypothesized relationships.Results indicated that only the Repurchase Rate was applicable in explaining the variation in the deal frequency variable, while none of the chosen determinants were significant in explaining the variation in the deal value and relative deal value measures. Overall, we found in all three cases that the fitted regression model did not explain the variation in our aggregate merger measure well.On a long-term equilibrium basis, we found that the All Bond Index and CPI were cointegrated with the deal frequency measure. The deal value measure had a long-term equilibrium relationship with the JSE All Share Index, while the relative deal value measure had a long term equilibrium relationship with the All Bond Index, CPI and PPIen
dc.description.availabilityunrestricteden
dc.description.departmentGordon Institute of Business Science (GIBS)en
dc.identifier.citationSmith, BS 2012, The determinants of aggregate domestic merger activity for companies listed on the Johannesburg Stock Exchange, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://hdl.handle.net/2263/22834 >en
dc.identifier.otherF13/4/268/zwen
dc.identifier.upetdurlhttp://upetd.up.ac.za/thesis/available/etd-02242013-133315/en
dc.identifier.urihttp://hdl.handle.net/2263/22834
dc.language.isoen
dc.publisherUniversity of Pretoriaen_ZA
dc.rights© 2012 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.en
dc.subjectUCTDen_US
dc.subjectMerger activityen
dc.subjectMacroeconomic factorsen
dc.subjectAcquisitionsen
dc.subjectMergersen
dc.titleThe determinants of aggregate domestic merger activity for companies listed on the Johannesburg Stock Exchangeen
dc.typeDissertationen

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