Seminar Series

2022 - 2023

Speaker: Ali Shantia (TBS).

Title: “Empirical Investigation of the Valuation Premium Effect of Target Firms’ Operations Capability in M&As ”

joint with Mehdi Nezami (Bradly University) and Sara Rezaee Vessal (ESSEC).

Date: Thursday, March 16th at 12h30 (Paris Time).

Abstract: Valuation of target firms in mergers and acquisitions (M&As) has far-reaching implications for shareholder wealth. This study investigates the effect of a target’s operations capability on the valuation premiums, above its market value, that it receives from the acquiring firm in an M&A. We find that target firms’ operations capability has a positive and economically significant effect on their M&A valuation premiums. However, this effect becomes weaker with increasing market overlap between the target and acquiring firms. Furthermore, post hoc analysis reveals that acquirers’ shareholders bestow a greater value on their M&A initiatives when targets with higher operations capability are pursued. These findings offer corporate executives a comprehensive perspective on the role of operations capability in enhancing shareholder wealth---beyond its effect on stock market value---in the context of a major strategic decision: corporate M&As.

You are cordially invited to participate in the following seminar of the FEELab, which will take place in Room 204, Bosco building.

For more information, please contact: Pierre Mella-Barral p.mella-barral@tbs-education.fr