This study analyzes the impact of acquisition announcements on the acquirer’s returns in Polish market in the period of 7 years from 2010 to 2016. Using the event study methodology with market model to obtain expected returns, results reveal significant negative abnormal return upon the acquisition announcement. Cross sectional regression indicates that acquisition motives, method of payment, target status and level of relatedness influence investors’ reaction upon announcement. Lower returns are generated for acquisitions, in which the main driver was expansion and for deals, in which acquired firm was private. The firms offering full cash payment and acquire company that operates in the same economic subsector obtain higher returns. Additionally, based on multifactor regression, cash acquisitions generate higher returns for the acquirer regardless of the acquisition motive, relatedness between two firms and acquired firm status. Finally, the results do not provide evidence that domestic acquisition generate higher returns than Cross-Border transactions

This study analyzes the impact of acquisition announcements on the acquirer’s returns in Polish market in the period of 7 years from 2010 to 2016. Using the event study methodology with market model to obtain expected returns, results reveal significant negative abnormal return upon the acquisition announcement. Cross sectional regression indicates that acquisition motives, method of payment, target status and level of relatedness influence investors’ reaction upon announcement. Lower returns are generated for acquisitions, in which the main driver was expansion and for deals, in which acquired firm was private. The firms offering full cash payment and acquire company that operates in the same economic subsector obtain higher returns. Additionally, based on multifactor regression, cash acquisitions generate higher returns for the acquirer regardless of the acquisition motive, relatedness between two firms and acquired firm status. Finally, the results do not provide evidence that domestic acquisition generate higher returns than Cross-Border transactions.

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