How stock exchange m & as affect their competitors’ shareholder value? Evidence from the world and Mena region

Abstract EN

This paper empirically investigates the effects of stock exchange M and As on their competitors’ shareholder value.

The focus first is on the 63 M and As of stock exchanges and their respective competitors in the same region during the 2000-2007 period and investigates the short-run performance (share-price responses) of these public stock exchanges.

We observe that when a stock exchange is merged with another exchange, its competitor significantly loses its shareholder value.

When the stock exchange is involved in a horizontal transaction instead of a vertical one, its competitor loses more shareholder value.

In addition, when the stock exchange is involved in a cross-region transaction instead of a within-region one, its competitor loses more shareholder value.

Second, we trace the stock exchanges in the MENA region and conduct a similar analysis for stock exchange M and A and alliance deals in MENA region and find that the above results still hold.

We also find that when the stock exchange is involved in a deal with is a M and A instead of an alliance; its competitor loses more shareholder value.