Value Creation from M&As: New Evidence

43 Pages Posted: 11 Oct 2016 Last revised: 29 Jan 2018

See all articles by George Alexandridis

George Alexandridis

ICMA Centre, Henley Business School

Nikolaos Antypas

Brunel Business School; ICMA Centre, Henley Business School

Nickolaos G. Travlos

ALBA Graduate Business School; University of Surrey

Date Written: May 17, 2017


M&A deals create more value for acquiring firm shareholders post-2009 than ever before. Public acquisitions fuel positive and statistically significant abnormal returns for acquirers while stock-for-stock deals no longer destroy value. Mega deals, priced at least $500 mil, typically associated with more pronounced agency problems, investor scrutiny and media attention, seem to be driving the documented upturn. Acquiring shareholders now gain $62 mil around the announcement of such deals; a $325 mil gain improvement compared to 1990-2009. The corresponding synergistic gains have also catapulted to more than $542 mil pointing to overall value creation from M&As on a large scale. Our results are robust to different measures and controls and appear to be linked with profound improvements in the quality of corporate governance among acquiring firms in the aftermath of the 2008 financial crisis.

Keywords: Mergers and Acquisitions, Acquirer Returns, Mega-Deals, Synergy Gains, Value Creation, Financial Crisis

JEL Classification: G34

Suggested Citation

Alexandridis, George and Antypas, Nikolaos and Antypas, Nikolaos and Travlos, Nickolaos G. and Travlos, Nickolaos G., Value Creation from M&As: New Evidence (May 17, 2017). Journal of Corporate Finance, Forthcoming, Available at SSRN: or

George Alexandridis (Contact Author)

ICMA Centre, Henley Business School ( email )

Whiteknights Campus
P.O. Box 242
Reading, RG6 6BA
United Kingdom
+44 (0) 118 378 4387 (Phone)

Nikolaos Antypas

ICMA Centre, Henley Business School ( email )

Whiteknights Park
P.O. Box 242
Reading RG6 6BA
United Kingdom

Brunel Business School ( email )

Kingston Lane
Eastern Gateway Building
Uxbridge, Middlesex UB8 3PH
United Kingdom

Nickolaos G. Travlos

University of Surrey ( email )

Guildford, Surrey GU2 5XH
United Kingdom

ALBA Graduate Business School ( email )

Athinas Ave. & 2A Areos Str.
Vouliagmeni 166 71, Athens


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