Abstract
Mergers and Acquisitions are game changers for human resources, employees, and management. M&A can change their way of working and their professional future. For managers, financial parameters (earnings from M&A transactions). In fact, M&A transactions are restructuring many sectors of the economy, aiming for structural development. M&A transactions can save broke societies and associate law and commercial departments.
Our R-language is focused on 2015 M&A transaction between Suncor and Canadian Oil Sands.
Extract
[...] Introduction to Econometrics with R - Econometrics with RStudio Introduction Mergers and Acquisitions are game changers for human resources, employees, management. M&A can change their way of working and their professional future. For managers, financial parameters (earnings from M&A transactions). In fact, M&A transactions are restructuring many sectors of economy, aiming structural development. M&A transactions can save broke societies and associate law and commercial departments. Our R-language is focused on 2015 M&A transaction between Suncor and Canadian Oil Sands. Suncor made a takeover bid on Canadian Oil Sands (COS) in 2015. [...]
[...] the regression coefficient which is measured between the profitability of security i and the market, and aplha is the intercept, i.e Representing the variance of market profitability and COV Rm) the covariance between the security's profitability and that of the market. The calculation of returns is done as follows (the return on an asset for example): Where Pt is the price of the asset at time t and log denotes the logarithmic function. Given its ease of implementation, most of research about events uses this model to rate theoretical returns. The Financial Asset Valuation Model (MEDAF) Developed by W. Sharpe (1964), and J. [...]
[...] COS allowed to compete with Middle East productors (Wright ; Cattaneo, 2016). Being the main Canadian operator of sand, Suncor managed to make great gains. In what extent can M&A transaction change market value of merged societies? Literature review According to the Revue Économie, Gestion et Société, an article entitled "Empirical study on the impact of financial information on Moroccan stock market behavior" (Nouredine Marchoud, 2020) deals with the impact of the increase in accounting information of companies listed in stock exchange. [...]
[...] Third stage Determining whether or not the asset studied has abnormal returns. Abnormal profitability is defined by the difference between the theoretical profitability defined using one of the methods indicated above and the observed profitability. For a firm i and an event date it can be expressed by: With Ai,t the abnormal profitability; Ri,t the observed profitability; Roi,t the theoretical profitability. Once these abnormal returns have been calculated, it is also possible to calculate the cumulative returns, by adding the daily abnormal returns for the entire observation window. [...]
[...] The main parameter is the event announcement date and not the event date. For one, during a geopolitical conflict, the markets react on the day of the announcement and not on the day the event takes place. This was the case for European stock markets whose values ??fell significantly when Russia spoke out about the military special operation. Concerning the distribution of dividends, the markets can react on the days when managers decide to distribute them, or at the time of the distribution. [...]
