Airline Mergers Boost Shareholder Value by 2.4% in American and European Markets
The article examines whether mergers and acquisitions in the American and European airline industries added value to shareholders after market deregulation. The researchers analyzed 64 public airline mergers using abnormal return event study methodology. They found a statistically significant positive abnormal shareholder return of 2.4% following airline mergers and acquisitions. Additionally, American airlines showed a slight outperformance of 1.4%, although this difference was not statistically significant.