The Swissair disaster – announcement effects of a failed acquisition strategy

Mark Friesen et al. (Asia Pacific Journal of Applied Finance, Vol. I, No. 5, p. 1-15

In this study we analyze the wealth effects of M&A transactions testing a sample of 52 acquisitions by the Swiss flag carrier Swissair between 1995 and 2001. During this period, Swissair followed an aggressive acquisition strategy that led the former leading European airline finally into bankruptcy. We therefore measure the stock price reactions around the announcement days when Swissair publicly declared its interest to acquire. Continue reading “The Swissair disaster – announcement effects of a failed acquisition strategy”