Title: A post-merger performance of acquiring firms: evidence from French stock market

Authors: Ferihane Zaraa Boubaker; Kamel Naoui

Addresses: Department of Finance and Accounting, Institut Supérieur de Comptabilité et d'Adminitration des Entreprises, University of Tunis El Manar, International Finance Group Tunisia, Tunisia ' Department of Finance and Accounting, Ecolet Supérieure de Commerce, Université de la Manouba, RIM RAF, Tunisia

Abstract: This paper investigates the impact of takeovers on the short- and long-run stock market performance of a sample of 87 mergers and acquisitions transactions undertaken between 2008–2012 by French financial and real estate industry. For the short horizon event studies, document short-run non-significant abnormal returns of acquiring companies. Furthermore, we test the financial performance by computing the cumulative abnormal returns (CAR), the buy and hold abnormal returns (BHAR) and the Jensen measure (alpha) to study long horizon of up to 60 months, as part of the calendar analysis, and 36 months in the event approach. The results show negative and significant long-term abnormal returns on acquiring companies either on event time or in calendar analysis for different horizons.

Keywords: mergers; acquisitions; short-term performance; long run performance; event studies; entrepreneurship.

DOI: 10.1504/IJESB.2020.104228

International Journal of Entrepreneurship and Small Business, 2020 Vol.39 No.1/2, pp.43 - 63

Received: 18 Sep 2017
Accepted: 03 Oct 2017
Published online: 23 Dec 2019 *

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