Individual Coursework Overview:
The maximum word limit for this coursework (excluding tables, contentspage, footnotes, charts, graphs, figures but including in-text references) is1,500 words. The word count must be stated in the assignment coversheet.Description:To write a report to assess the stock market reaction to the acquirer firms if it announces to bid for a merger & acquisition (M&A) transaction. Is the finding of your coursework supporting or against semi-strong market efficiency in the UK?Requirements of contents:Your coursework should cover seven sections:
(1) Main tables;
(2) Main results;
(3) Conclusion;
(4) Discussion;
(5) Limitation;
(6) References;
(7) Appendix.Reference and Appendix are mustbut they will not count for word limit. •
(1) Tableof Abnormal Return (AR) and Cumulative abnormal Return(CAR) around several “event” windows. They are:AR(0), AR(1),AR(2),AR(3),CAR(0,1),CAR(0,2) and CAR (0,3).
a. Employ market model to estimate the normal return.
b. The estimation period for market model is up to 43 days prior to the event,(-43, -1)
c. Calculate the abnormal return (AR) based on market model.d. Calculate the cumulative abnormal return (CAR) based on AR.
2e.T test for the average AR and CARf. Suggested format of tables islisted below.
(2) Briefly discuss the main results of the table. Their meanings, tstatistics and whether they are reliable or not based on t test.
(3) Conclusion: Summarise those results and give your interpretation and implication. Based on your study, do UK acquirer PLC cumulative abnormal returns’ shareholders get benefits or not when acquirers announced the bid for M&A? Does your result support Semi-strong form of efficiency or not in the UK?
(4)Discussions: Compared to the literature (you need to find thereferences), are your findings consistent or against the previous results?
(5) Limitations: What are the limitations of such a study? If you wouldlike to do this topic in your dissertation in this summer, what would youlike to do it further?
(6) Reference: Academic papers you have cited in your coursework. Forinstance, those papers you used to compare with your
