Finance Dissertation

Abstract

ABSTRACT

1- Wealth Effects of Mergers and Acquisitions (M&As) on Target Firm Shareholders in the UK

This part of the paper provides an analysis of the wealth effects of M&As on target firm shareholder returns. Based on the application of an event study methodology to a sample of 50 M&A announcements in the UK over the period 1st January 2018 to 31st May 2020, the study provides evidence of the prevalence of significant negative CAARs. This means that M&As in the UK do not create value for shareholders. While these findings generally differ from those observed in previous studies, positive abnormal returns were positive one day prior to the M&A announcement. The overall negative and significant CAARs can be attributed to a number of factors such as M&As taking place between unrelated businesses, M&As being announced around the time of negative news announcements of key economic indicators; M&As completed by CEOs with little or no experience in the field. For example, most of the announcements were done at the same time with news releases concerning Brexit negotiations and their potential impact on the UK economy. While news releases concerning Brexit and its impact on the macroeconomy might have increased investor attention in the market and as such enabled them to properly evaluate M&A deals, investors might have as well over- or under-reacted to M&A announcements.

2- Data Analytics” Space Exploration”

This part of the paper provides an analysis of the Space Exploration, A number of space probes left Earth for planets in the past few years. One of the missions is estimated to cost £250m to £300m and it will become a European-built probe on a spacecraft touching down on another planet. This paper provides an analysis ofDevelop four Detailed SCENARIOS , Scenario A: the baseline scenario , Scenario B: the best-case scenario , Scenario C: the worst-case scenario , Scenario D: an unthinkable, almost impossible.

3- ISSUES IN FINANCIAL STABILITYS

This part of the paper provides to cover the main financial stability issues affecting the financial and banking markets today. Topics as bank risk management, financial regulation, financial stability implications of the new financial competitors (from FinTech to BigTech such Amazon, Google among others) and financial digitalization will be included. The impact of Covid-19 on the financial sector and its stability.

4- Market Microstructure and High Frequency Trading (HFT): Market Organisation, Market Transparency and Market Efficiency

This paper provides a discussion of the impact of HFT trading and market microstructure on the organisation and functioning of securities markets, the transparency of markets and the efficiency of markets. The analysis suggests that HFT along with regulations have contributed to an increase in trading venues and fragmented markets with various trading strategies. In particular, advances in technology have contributed to the development of high speed networks for the transmission of buy and sell orders across exchanges. In addition, unconventional exchanges such as ATSs and dark pools now operate alongside conventional exchanges. In addition, to speed and fragmentation of markets, HTF has led to the development of new trading strategies such as market making, arbitrage trading, news-based trading and direction-based trading. These new strategies have increased competition and reduced the spreads available to market makers. By making information readily available to most market participants at the same time, HFT has led to more transparent markets. Unlike before, uninformed traders can quickly observe the trades of informed HFT traders. This reduces the level of information advantage that informed traders have over uninformed traders thus contributing to overall improvements in market quality.