[ La Performance des Fusions et Acquisitions bancaires : Le cas de la Banque Commerciale du Maroc et Wafabank ]
Volume 3, Issue 4, August 2013, Pages 908–918
Hicham MEGHOUAR1 and Hicham SBAI2
1 Ecole Nationale de Commerce et de Gestion - Settat (Maroc); GREGOR - IAE de Paris, France
2 Ecole Nationale de Commerce et de Gestion - El Jadida (Maroc); CREOP - EA Université de Limoges, France
Original language: French
Copyright © 2013 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Measuring the effectiveness of bank mergers and acquisitions has been the subject of several studies mainly on Anglo-Saxon and European markets. The aims of this paper is to examine the performance of these operations realized on emerging markets and appreciate the creation of financial and strategic values of a bank merger, in this particular case, the merger between the Commercial Bank (BCM) and Wafabank who took place in Morocco on 2003. In this research, the method of event study, which measures stock performance in the short term, and the method of pairing, which assesses accounting performance, were used. The analysis of empirical results shows that at the announcement of the transaction a negative abnormal return for the acquirer and positive for the target firm. These first results are consistent with other empirical studies who emphasized the negative impact of mergers and acquisitions on shareholder wealth of the acquiring and positive impact on shareholder wealth of the target firm. Also, the financial ratio analysis shows an improvement in profitability and productivity of the combined entity in the medium term, which is consistent with research confirming that mergers lead to a better use of assets, and can benefit from operational synergies and efficiency gains.
Author Keywords: Shareholder value created, Merger, Event method, Method of pairing, Profitability.
Volume 3, Issue 4, August 2013, Pages 908–918
Hicham MEGHOUAR1 and Hicham SBAI2
1 Ecole Nationale de Commerce et de Gestion - Settat (Maroc); GREGOR - IAE de Paris, France
2 Ecole Nationale de Commerce et de Gestion - El Jadida (Maroc); CREOP - EA Université de Limoges, France
Original language: French
Copyright © 2013 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
Measuring the effectiveness of bank mergers and acquisitions has been the subject of several studies mainly on Anglo-Saxon and European markets. The aims of this paper is to examine the performance of these operations realized on emerging markets and appreciate the creation of financial and strategic values of a bank merger, in this particular case, the merger between the Commercial Bank (BCM) and Wafabank who took place in Morocco on 2003. In this research, the method of event study, which measures stock performance in the short term, and the method of pairing, which assesses accounting performance, were used. The analysis of empirical results shows that at the announcement of the transaction a negative abnormal return for the acquirer and positive for the target firm. These first results are consistent with other empirical studies who emphasized the negative impact of mergers and acquisitions on shareholder wealth of the acquiring and positive impact on shareholder wealth of the target firm. Also, the financial ratio analysis shows an improvement in profitability and productivity of the combined entity in the medium term, which is consistent with research confirming that mergers lead to a better use of assets, and can benefit from operational synergies and efficiency gains.
Author Keywords: Shareholder value created, Merger, Event method, Method of pairing, Profitability.
Abstract: (french)
La mesure de l'efficacité des fusions et acquisitions bancaires a fait l'objet de plusieurs études essentiellement sur les marchés anglo-saxon et européen. L'objectif de cet article est d'examiner la performance de ces opérations réalisées sur des marchés émergents et d'apprécier la création de valeur financière et stratégique d'un rapprochement bancaire, en l'occurrence la fusion entre la Banque Commerciale (BCM) et Wafabank qui a eu lieu au Maroc en 2003. Lors de cette recherche, la méthode de l'étude d'événement qui mesure la value financière à court terme, et la technique de pairage qui permet d'apprécier la performance comptable, ont été utilisées. L'analyse des résultats empiriques montre qu'à l'annonce de cette opération une rentabilité anormale négative pour l'acquéreur et positive pour la firme cible. Ces premiers résultats sont en conformité avec les autres études empiriques qui ont souligné un impact négatif des Fusions et Acquisitions sur la richesse des actionnaires de la firme acquéreuse et positif sur celle des actionnaires de la firme cible. Aussi, l'analyse des ratios financiers montre une amélioration de la profitabilité et de la productivité de l'entité regroupée ce qui corrobore avec les conclusions des recherches qui confirment que les fusions conduisent à une meilleure utilisation des actifs et permettent de bénéficier des synergies opérationnelles et des gains d'efficience.
Author Keywords: Création de valeur, Fusion, Méthode d'événement, Méthode de pairage, Rentabilité.
How to Cite this Article
Hicham MEGHOUAR and Hicham SBAI, “The Performance of Bank Mergers and Acquisitions: The case of the Commercial Bank of Morocco and Wafabank,” International Journal of Innovation and Applied Studies, vol. 3, no. 4, pp. 908–918, August 2013.
