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Long-Term Value Creation in Mergers and Acquisitions: Contribution to the Debate

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Modeling, Dynamics, Optimization and Bioeconomics III (DGS 2016, BIOECONOMY 2015)

Part of the book series: Springer Proceedings in Mathematics & Statistics ((PROMS,volume 224))

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Abstract

In recent years multiple empirical works have been undertaken to analyze the effect of mergers and acquisitions (M&A) on corporate performance, in order to effectively confirm whether M&A are investment projects that are able to create value for the shareholders. Nowadays, the analysis of the M&A value creation is still subjected to a profound debate, especially when studying the implication of time (short-term versus long-term value creation measurement) and the methodology to evaluate the value creation in the long run. In this chapter we propose a comprehensiv e review and in-depth analysis about these open debates, we evaluate the validity of the different methodologies based in calculating the stock abnormal returns provoked by the operation, and we include, as additional contribution, a short study of the implications of this theoretical discussion in a concrete example of sectoral M&A in the digital era, to illustrate the debate.

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Authors and Affiliations

  1. Universidad Nacional de Educación a Distancia, Madrid, Spain

    Julio Navío-Marco & Marta Solórzano-García

Authors
  1. Julio Navío-Marco
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  2. Marta Solórzano-García
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Correspondence to Julio Navío-Marco .

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Editors and Affiliations

  1. LIAAD—INESC TEC, Department of Mathematics, Faculty of Science, University of Porto, Porto, Portugal

    Alberto A. Pinto

  2. Department of Agricultural and Resource Economics, University of California, Berkeley, California, USA

    David Zilberman

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Navío-Marco, J., Solórzano-García, M. (2018). Long-Term Value Creation in Mergers and Acquisitions: Contribution to the Debate. In: Pinto, A., Zilberman, D. (eds) Modeling, Dynamics, Optimization and Bioeconomics III. DGS BIOECONOMY 2016 2015. Springer Proceedings in Mathematics & Statistics, vol 224. Springer, Cham. https://doi.org/10.1007/978-3-319-74086-7_14

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