CORPORATE DECISION-MAKING AND THE IMPACT OF ACQUISITIONS ON SHARE PRICES: THE CASE OF VERIZON
This study investigates the impact of Verizon Communications Inc.'s acquisition of Yahoo on the company's stock performance, using a combination of statistical, visual, and multiscale analytical methods. The research analyzes how strategic corporate decisions, particularly acquisitions, i...
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| Format: | Article |
| Language: | English |
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Editura Universitatii Agora
2024-12-01
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| Series: | Agora International Journal of Economical Sciences |
| Online Access: | https://univagora.ro/jour/index.php/aijes/article/view/6963 |
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| author | Deimante Vasiliauskaite Kateryna Hrytsiv Oleksandra Tkachenko Marharyta Zhakun |
| author_facet | Deimante Vasiliauskaite Kateryna Hrytsiv Oleksandra Tkachenko Marharyta Zhakun |
| author_sort | Deimante Vasiliauskaite |
| collection | DOAJ |
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This study investigates the impact of Verizon Communications Inc.'s acquisition of Yahoo on the company's stock performance, using a combination of statistical, visual, and multiscale analytical methods. The research analyzes how strategic corporate decisions, particularly acquisitions, influence short-term and long-term stock behavior. Data spanning from 2014 to 2024 was analyzed to capture pre-acquisition, acquisition, and post-acquisition trends. The methodology integrates boxplot visualizations to explore variability and outliers, quantile analysis to assess distributional characteristics, and descriptive statistics to summarize key metrics such as mean, standard deviation, skewness, and kurtosis. Tabulation analysis evaluates associations between stock returns and trading volumes, while wavelet analysis decomposes stock returns into multiple time scales to identify short-term fluctuations and long-term trends. Results reveal significant volatility during key events, such as the Yahoo acquisition in 2017 and the COVID-19 pandemic, with daily fluctuations peaking at ±6. Medium-term adjustments (4–8 days) exhibited moderate changes, and long-term trends (32-day cycles) showed structural shifts, including positive coefficients in 2017 (+0.5) and negative coefficients in 2020 (-0.6). The research highlights the heavy-tailed nature of return distributions and skewed trading volume patterns. This study provides insights into the multifaceted effects of acquisitions on stock performance, offering valuable implications for investors and corporate managers in optimizing strategic decisions.
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| format | Article |
| id | doaj-art-8fe39d4b15f746ad9475d6df12eaf6cd |
| institution | Kabale University |
| issn | 2067-3310 2067-7669 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Editura Universitatii Agora |
| record_format | Article |
| series | Agora International Journal of Economical Sciences |
| spelling | doaj-art-8fe39d4b15f746ad9475d6df12eaf6cd2024-12-29T13:39:05ZengEditura Universitatii AgoraAgora International Journal of Economical Sciences2067-33102067-76692024-12-0118210.15837/aijes.v18i2.6963CORPORATE DECISION-MAKING AND THE IMPACT OF ACQUISITIONS ON SHARE PRICES: THE CASE OF VERIZONDeimante VasiliauskaiteKateryna HrytsivOleksandra TkachenkoMarharyta Zhakun This study investigates the impact of Verizon Communications Inc.'s acquisition of Yahoo on the company's stock performance, using a combination of statistical, visual, and multiscale analytical methods. The research analyzes how strategic corporate decisions, particularly acquisitions, influence short-term and long-term stock behavior. Data spanning from 2014 to 2024 was analyzed to capture pre-acquisition, acquisition, and post-acquisition trends. The methodology integrates boxplot visualizations to explore variability and outliers, quantile analysis to assess distributional characteristics, and descriptive statistics to summarize key metrics such as mean, standard deviation, skewness, and kurtosis. Tabulation analysis evaluates associations between stock returns and trading volumes, while wavelet analysis decomposes stock returns into multiple time scales to identify short-term fluctuations and long-term trends. Results reveal significant volatility during key events, such as the Yahoo acquisition in 2017 and the COVID-19 pandemic, with daily fluctuations peaking at ±6. Medium-term adjustments (4–8 days) exhibited moderate changes, and long-term trends (32-day cycles) showed structural shifts, including positive coefficients in 2017 (+0.5) and negative coefficients in 2020 (-0.6). The research highlights the heavy-tailed nature of return distributions and skewed trading volume patterns. This study provides insights into the multifaceted effects of acquisitions on stock performance, offering valuable implications for investors and corporate managers in optimizing strategic decisions. https://univagora.ro/jour/index.php/aijes/article/view/6963 |
| spellingShingle | Deimante Vasiliauskaite Kateryna Hrytsiv Oleksandra Tkachenko Marharyta Zhakun CORPORATE DECISION-MAKING AND THE IMPACT OF ACQUISITIONS ON SHARE PRICES: THE CASE OF VERIZON Agora International Journal of Economical Sciences |
| title | CORPORATE DECISION-MAKING AND THE IMPACT OF ACQUISITIONS ON SHARE PRICES: THE CASE OF VERIZON |
| title_full | CORPORATE DECISION-MAKING AND THE IMPACT OF ACQUISITIONS ON SHARE PRICES: THE CASE OF VERIZON |
| title_fullStr | CORPORATE DECISION-MAKING AND THE IMPACT OF ACQUISITIONS ON SHARE PRICES: THE CASE OF VERIZON |
| title_full_unstemmed | CORPORATE DECISION-MAKING AND THE IMPACT OF ACQUISITIONS ON SHARE PRICES: THE CASE OF VERIZON |
| title_short | CORPORATE DECISION-MAKING AND THE IMPACT OF ACQUISITIONS ON SHARE PRICES: THE CASE OF VERIZON |
| title_sort | corporate decision making and the impact of acquisitions on share prices the case of verizon |
| url | https://univagora.ro/jour/index.php/aijes/article/view/6963 |
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