The Impact of Conviction for Anti‐Competitive Practices on Firm Valuation: A Contingency Approach. (18th May 2016)

• Record Type: Journal Article
• Authors: Le Roy, Frédéric; Sentis, Patrick; Jerson, Ariste
• Is Part Of: Managerial and decision economics. Volume 38:Number 4(2017)
• Page Start: 534
• Page End: 546
• Publication Date: 2016-05-18
• Subjects: Managerial economics -- Periodicals; Decision making -- Periodicals; Management -- Periodicals; 658.15
• DOI: 10.1002/mde.2801
• Languages: English
• ISSNs: 0143-6570

Abstract

Abstract : The previous research on the impact of anti‐competitive practices on firm valuation has shown conflicting results. To explain these conflicting results, we introduce three contingency factors: the amount of the fine, the degree of company involvement, and the company size. To test the impact of these factors, an event study is conducted on a sample of 305 confirmed cases in Europe between 1998 and 2007. The results show that the impact of conviction for anti‐competitive practice is greater when the relative amount of the fine is high, the company's degree of involvement is high, and the company is small. Copyright © 2016 John Wiley & Sons, Ltd.