The impact of M&A announcement on financial performance: Case study of Moroccan companies

Abstract

Our research focuses on the reaction of the Moroccan market to the announcement of a merger and how it relates to the shareholder value creation of the target company. One of the particularities of this study is the contribution it will provide towards the comprehension of a phenomenon that is becoming increasingly present in Morocco and at the same time represents a new research field. In order to test theories, we used the event study model to assist our reflection based on nine mergers of Moroccan companies according to two different profiles: Moroccan subsidiaries (absorbing and absorbed) of multinational companies, whose merger in Morocco is an extension of the merger of foreign parent companies and Moroccan companies, with no external dependence, who opted for merger operations.

Keywords: Merger, announcement of a merger, shareholder value creation, Morocco.

Classification JEL: G34, G14

Paper type: Empirical Research