Title: Determinants of value creation through mergers and acquisitions in the MENA region

Authors: Mohammed Ibrahimi; Mohammed Amine; Abdellatif Taghzouti

Addresses: ENCG Casablanca, Hassan II University of Casablanca, 2725 Route des Chaux et Ciments, Casablanca 20250, Morocco ' ENCG Casablanca, Hassan II University of Casablanca, 2725 Route des Chaux et Ciments, Casablanca 20250, Morocco ' ENCG Fès, University of Sidi Mohamed Ben Abdellah, Route D'Immouzer, B.P A81, Fès 30000, Morocco

Abstract: Using a sample of 610 operations over 15 years, our article aims to analyse value creation in mergers and acquisitions and its determinants in the MENA region, using event study method and multiple regression. Our results indicate that overall, mergers and acquisitions create more value for targets than they do for acquirers. In domestic deals, it is the acquirers who benefit the most, while in cross-border deals, it is the targets who profit the most. This value creation is impacted positively by mergers and negatively by acquisitions and by industry relatedness. Geographic scope, payment method, mergers and acquisition experience and target status have no effect on value creation.

Keywords: mergers; acquisitions; value creation; MENA; determinants.

DOI: 10.1504/IJBPM.2021.116404

International Journal of Business Performance Management, 2021 Vol.22 No.2/3, pp.273 - 290

Received: 04 Jun 2020
Accepted: 07 Aug 2020

Published online: 16 Jul 2021 *

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