Determinants of Value Creation of Mergers and Acquisitions

This chapter helps to evaluate value creation observed upon the announcement of mergers and acquisitions, and study the explanatory variables. It attempts to answer the research questions related to the determinants influencing the value creation of mergers and acquisitions upon their announcement. The chapter presents the reaction of financial markets to the announcement of mergers and acquisitions. The size of the acquirer was studied first given its influence on the follow-up of the company by financial analysts. The latter attach special importance to large-sized companies and give great attention to the events that accompany their activities and their strategies, which plays a role in increasing market efficiency. The chapter examines the specificities of the target and the operation with the aim of dealing with the factors of value creation of mergers and acquisitions in depth.