Short term wealth creation sustainability of French acquirers of unlisted versus listed firms

Patrick Navatte and Houssam Bouzgarrou ()

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Abstract: We study the listing target status impact on the announcement period of French acquirers, and we examine the sustainability of short term wealth creation in the long term. Unlisted-target acquisitions are wealth creating relative to listed-target acquisitions. Besides, in the long-term, acquirers of unlisted targets outperform acquirers of listed targets and realize superior abnormal stock returns. Acquirers of unlisted targets realize superior changes in post-acquisition operating performance, particularly for a low relative deal size ratio. Announcement period abnormal returns are positively related to post-acquisition operating performance. Therefore, shortterm gains are sustainable on the long-term and the market can predict change in operating performance.

Keywords: Acquisitions; listing target status; short-term abnormal returns; long-term stock returns; post-acquisition operating performance (search for similar items in EconPapers)
Date: 2012
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Published in Bankers Markets & Investors : an academic & professional review, 2012, 121, pp.47-58

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00760702

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