| Abstract : | The present thesis examines the value creation of Mergers and Acquisitions in the telecommunications industry in Europe during the period 2001-2014. This is realized, firstly, with the use of the event study methodology and, more specifically, with the market adjusted returns model in order to calculate the abnormal returns for both the acquirers and the targets. The findings of this methodology reveal that targets’ shareholders enjoy significant positive abnormal returns, while bidders gain marginally negative or zero abnormal returns for the event windows (–1, +1) and (–2, +2), respectively. In the second part of the thesis, the selected determinants that are assumed to have a relationship with the targets’ abnormal returns, no one has proven to be statistically significant except for the size of the firm, which is found to play a role in CARs following an M&A announcement.
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