Do single takeovers outperform corporate acquisition programs? Evidence from the French stock market

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Do single takeovers outperform corporate acquisition programs? Evidence from the French stock market. / Boufama, Omar; Rogova, Elena.

In: International Journal of Business Performance Management, Vol. 22, No. 2-3, 2021, p. 291-308.

Research output: Contribution to journal › Article › peer-review

Author

Boufama, Omar ; Rogova, Elena. / Do single takeovers outperform corporate acquisition programs? Evidence from the French stock market. In: International Journal of Business Performance Management. 2021 ; Vol. 22, No. 2-3. pp. 291-308.

BibTeX

@article{ae52cd5a18fb43109b5c31b70e8852ad,

title = "Do single takeovers outperform corporate acquisition programs? Evidence from the French stock market",

abstract = "This paper compares the profitability of French acquiring firms following the launch of corporate acquisition programs with that of single takeovers, by examining wealth of acquirers in both cases. While using the event study methodology for the calculation of abnormal returns for single takeovers, this study also considers the model of partially anticipated events for the assessment of the economic impact and the announcement effect of acquisition attempts. For the acquisition programs, we used a sample containing 46 French active acquirers, which launched 97 acquisition attempts between 1997 and 2007. For single takeovers, we examined 23 acquisitions by the same acquirers. The results of this study show that French investors obtain positive returns during and around the month of takeover announcement. French acquirers earn an average of 3.75% in two months, the month of announcement and the following month, and 4.02% in the month of announcement and the month preceding the announcement. These results show that single takeovers outperform corporate acquisition programs, since these same French acquiring firms do not generate any profitability following the launch of these investment programs.",

keywords = "Abnormal returns, Acquirers' returns, Corporate acquisition programs, French acquirers, Takeovers",

author = "Omar Boufama and Elena Rogova",

note = "Publisher Copyright: {\textcopyright} 2021 Inderscience Enterprises Ltd.",

year = "2021",

doi = "10.1504/IJBPM.2021.116411",

language = "English",

volume = "22",

pages = "291--308",

journal = "International Journal of Business Performance Management",

issn = "1368-4892",

publisher = "Inderscience",

number = "2-3",

}

RIS

TY - JOUR

T1 - Do single takeovers outperform corporate acquisition programs? Evidence from the French stock market

AU - Boufama, Omar

AU - Rogova, Elena

PY - 2021

Y1 - 2021

N2 - This paper compares the profitability of French acquiring firms following the launch of corporate acquisition programs with that of single takeovers, by examining wealth of acquirers in both cases. While using the event study methodology for the calculation of abnormal returns for single takeovers, this study also considers the model of partially anticipated events for the assessment of the economic impact and the announcement effect of acquisition attempts. For the acquisition programs, we used a sample containing 46 French active acquirers, which launched 97 acquisition attempts between 1997 and 2007. For single takeovers, we examined 23 acquisitions by the same acquirers. The results of this study show that French investors obtain positive returns during and around the month of takeover announcement. French acquirers earn an average of 3.75% in two months, the month of announcement and the following month, and 4.02% in the month of announcement and the month preceding the announcement. These results show that single takeovers outperform corporate acquisition programs, since these same French acquiring firms do not generate any profitability following the launch of these investment programs.

AB - This paper compares the profitability of French acquiring firms following the launch of corporate acquisition programs with that of single takeovers, by examining wealth of acquirers in both cases. While using the event study methodology for the calculation of abnormal returns for single takeovers, this study also considers the model of partially anticipated events for the assessment of the economic impact and the announcement effect of acquisition attempts. For the acquisition programs, we used a sample containing 46 French active acquirers, which launched 97 acquisition attempts between 1997 and 2007. For single takeovers, we examined 23 acquisitions by the same acquirers. The results of this study show that French investors obtain positive returns during and around the month of takeover announcement. French acquirers earn an average of 3.75% in two months, the month of announcement and the following month, and 4.02% in the month of announcement and the month preceding the announcement. These results show that single takeovers outperform corporate acquisition programs, since these same French acquiring firms do not generate any profitability following the launch of these investment programs.

KW - Abnormal returns

KW - Acquirers' returns

KW - Corporate acquisition programs

KW - French acquirers

KW - Takeovers

UR - http://www.scopus.com/inward/record.url?scp=85111288303&partnerID=8YFLogxK

U2 - 10.1504/IJBPM.2021.116411

DO - 10.1504/IJBPM.2021.116411

M3 - Article

AN - SCOPUS:85111288303

VL - 22

SP - 291

EP - 308

JO - International Journal of Business Performance Management

JF - International Journal of Business Performance Management

SN - 1368-4892

IS - 2-3

ER -

ID: 99665760