Mergers and acquisitions of non-financial firms in Europe: the case of the Athens Stock Exchange

This study examines whether mergers and acquisitions create value for shareholders in the Athens Stock Exchange, during an extremely volatile period. The results indicate, on average, statistically insignificant investor reaction around merger announcements. However, further analysis suggests that investors react negatively to announcements by bidder firms in the food and fish farm sectors, and positively to announcements in the commercial/advertising and technology sectors. There is also evidence that information arrives at the market a few days before the official announcement. Contrary to earlier empirical evidence, insignificant returns are reported for target firms.