The Impact of M&A on Performance of Firms in The Luxury Goods Industry
Abstract
This study focuses on the recent M&A activities in luxury industry. The interest of investors in the industry has never been greater than ever, and there has been a remarkable consolidation not long ago. From 2007 to 2017, top 30 luxury companies in the luxury industry made 31 major acquisitions, and an event study is conducted to test this hypothesis. Acquirers have indeed achieved significant positive abnormal returns on the anniversary. However, in the long window period, the acquirers tend to perform below the expected return, contrary to the short-term performance.
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DOI: http://dx.doi.org/10.18686/fm.v8i5.10344
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