Importance The research analyzes how M&A information can influence acquiring and acquired companies in the U.S. chemical industry, whose shares had been circulating in stock markets within 2000–2015. Objectives I observe how share premium of acquiring and acquired companies changes in response to M&A announcement in the chemical industry. I also quantify the significance of such announcements. Methods The research relies upon an event study. Results I verified two hypotheses on the nature of effects M&A announcements had on share quotations of acquiring and acquired companies operating in the U.S. chemical industry. Conclusions and Relevance I found statistically important difference showing that such information had a different effect on acquiring and acquired companies’ share quotations. If the significance of such announcements is assessed and quantified, it may facilitate analyzing the efficiency of the market mechanism and help investors and managing companies take more reasonable decisions.
Keywords: M&A, event study
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