Underlying Success Factors of Swedish Acquiring Firms in a Thriving Market : A Quantitative Study About Performance Indicators in 2021

Abstract: This thesis investigates abnormal returns for 60 Swedish acquiring firms within multipleindustries during a stock market peak. The research is limited to 2021, a year in which theM&A market saw an upswing in the number of transactions and volumes. Moreover, theconducted study will compare numerous deal and firm characteristics to determine if they arerelated to market performance. Our findings indicate that no substantial abnormal returns werefound for Swedish acquiring firms during the event. In contrast to prior international findings,our research concludes that large firms perform better than small. In addition, a significantrelationship between abnormal return and Tobin’s Q was discovered, indicating that a firm’sover- or undervaluation characteristics affect the stock market performance of acquirers.