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127481

The motives for takeover bid targets: “A Study in the Egyptian Context”

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Last updated: 04 Jan 2025

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Abstract

This study analyses the characteristics of companies subject to takeover bids in the Egyptian context. The main objective of this paper is to examine the suitability of methodologies that the literature proposes to predict the acquisition targets, in order to explain the motives for takeover bids in Egypt. So, the study, uses a sample of 20 non- financial firms that were subject to takeover bids in Egyptian Stock Exchange during the period 2010-2015, compared with a further 20 firms, selected on an industrial and time basis, that were not taken over. The paper found that firms subject to takeover bid were characterized by having lower profitability than other firms operating in the same sector.  However, no difference was found in terms of market valuation and this circumstance not allow to argue that Egyptian takeover have been driven by disciplinary motives. Even imbalance, size and ownership concentration were not significant variables in the distinction between firms that were taken over and firms that were not.

DOI

10.21608/abj.2017.127481

Authors

First Name

Basam Samir

Last Name

Baroma

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Affiliation

Faculty of Commerce, Tanta University

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Volume

4

Article Issue

2

Related Issue

18867

Issue Date

2017-12-01

Receive Date

2016-03-05

Publish Date

2017-12-01

Page Start

23

Page End

42

Print ISSN

2682-3446

Online ISSN

2682-4817

Link

https://abj.journals.ekb.eg/article_127481.html

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https://abj.journals.ekb.eg/service?article_code=127481

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Publication Title

مجلة البحوث المحاسبية

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https://abj.journals.ekb.eg/

MainTitle

The motives for takeover bid targets: “A Study in the Egyptian Context”

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Article

Created At

22 Jan 2023