The Impact Of Mergers And Acquisitions On Maximizing The Company's Market Value - Econometric Study For The Period (1985-2018)-

Résumé: ABSTRACT: This paper examines the impact of mergers and acquisitions on maximizing the company's market value. The study concluded that there was a mutual causality running in one direction; from mergers and acquisitions to the market value of the traded shares used in the study to measure the company's market value. The study also showed that there was a high correlation between the two variables of the study yielding a correlation coefficient of 65%. Furthermore, the dynamic VAR analysis revealed that the response of the market value of shares to M&A shocks had positive effects over the response period. As far as the variance decomposition results are concerned, they showed that M&A had a positive effect of more than 67% on the market value of shares, especially in the medium term. Keywords : Merger and Acquisition, company value, , Vector Autoregression (VAR).

Publié dans la revue: Revue d'économie et de statistique appliquée