Determinant Factors of M&As in Emerging Economies: The Impact of Financial Performance in Romanian Minority Acquisitions

Liviu-George Maha, George-Marian Aevoae, Elena-Daniela Viorică and Roxana-Manuela Dicu ()
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George-Marian Aevoae: Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iași, 700505 Iași, Romania
Elena-Daniela Viorică: Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iași, 700505 Iași, Romania
Roxana-Manuela Dicu: Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iași, 700505 Iași, Romania

Economies, 2023, vol. 11, issue 10, 1-22

Abstract: The paper aims at describing two dimensions of acquirers’ behaviour when purchasing minority shares in Romanian listed target companies, based on a sample of 710 Romanian minority acquisitions. The first dimension regards the acquirer’s decision to invest a certain amount, being influenced by the profitability of the target company The relationship was found to be positive and significant. To test the model further, a sample of 308 transactions was used, after excluding the transactions involving primary sector and blue-chip target companies. The second dimension focuses on the amount of purchased stake, which leads to either financial gains or the takeover intention, under the influence of the target company’s operational profit. The results show a positive and significant relationship for the small stakes and a non-significant one for the high stakes.

Keywords: minority acquisitions; dividends; Bucharest Stock Exchange; financial performance; emerging economies (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:11:y:2023:i:10:p:241-:d:1249961

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