The French SMEs and their Financial Performance at the Launch of the Corporates Acquisition Programs

Omar Boufama

Authors

Omar Boufama

Keywords:

acquisition program; announcement effect; economic impact; profitability

Abstract

This paper presents an econometric analysis of the profitability generated at the initiation of the corporates acquisition programs by French investors. These programs generally launched by the firms directors, need to have a high frequency of acquisition attempts, in order to cover fixed costs of the program and generate profits, which they increase the value of the firm and enrich the shareholders. The French "SME" succeed better than large companies in the launch of acquisition programs. The hypothesis of the announcement effect was been verified, and the two others, were rejected by the t-student test. In a subsample two "SME", Guerbet and Sartorius from Healthcare sector have a positive value. These results show clearly that the corporate acquisition programs are projects of value-creating investment for French "SME".

Downloads

How to Cite

The French SMEs and their Financial Performance at the Launch of the Corporates Acquisition Programs. (2016). Global Journal of Management and Business Research, 16(C7), 11-17. https://journalofbusiness.org/index.php/GJMBR/article/view/2039

Download Citation

References

Nihat Aktas, Eric De Bodt, Richard Roll (2013) Learning from repetitive acquisitions: Evidence from the time between deals. 108(1), 99-117.

N Aktas, E De Bodt, R Roll (2009) Learning, hubris and corporate serial acquisitions. 15, 543-561.

S Arvanitis, T Stucki (2014) Do mergers and acquisitions among small and medium-sized enterprises affect the performance of acquiring firms.

Paul Asquith, Robert Bruner, David Mullins (1983) The gains to bidding firms from merger. 11(1-4), 121-139.

Houssam Bouzgarrou, Patrick Navatte (2012) Ownership structure and acquirers performance: Family vs. non-family firms. 27, 123-134.

P Malatesta, R Thompson (1985) Partially anticipated events: a model of stock price reactions with an application to acquisitions. 14, 237-250.

P Malatesta (1983) The wealth effect of merger activity and the objective functions of merging firms. 11, 155-181.

K Schipper, R Thompson (1983) Evidence on the capitalized value of merger activity for acquiring firms. 11, 85-119.

F Weston, T Copeland (1992) Managerial Finance.

Unknown Title.