The determinants of the abnormal return of acquiring. French case

      Аннотация: This work analyses bidder short-term returns of 74 takeovers bids that occur between 1996 and 2010 on the French market. Furthermore, the determinants of this performance are examined to improve understanding of the sources of value creation or destruction arising from M&A. The event study methodology is used to estimate bidder value creation. Two findings are shown in this study. First, we find strong evidence that the announcement of a takeover bid destructed of value for the bidder. Second, the results show evidence of the destruction of value for bidder. In addition, the relative size of the target and the level debt is associated with value destruction for the bidder.

Ключевые слова: Short-term, value destruction, acquiring firm, French, abnormal return, acquiring, return of acquiring