The impact of changing regulations, governance and CSR strategies on M&A performance in France.

Summary Because of biases that corporate executives suffer when making acquisition decisions, M&A has a long history of not generating positive returns for buyers. Through three trials, our research explores the impact of recent changes in the economic and social environment, including 1) the deployment of IFRS, 2) the development of board committees, and 3) the publication of the NRE Law, on the M&A performance of acquirers in France. Analyzing the abnormal returns generated at the time an acquisition is made, we find that M&A performance has not improved, mainly because the main changes that have occurred have left significant discretion to management but also because the adoption of new market practices have been incorporated by investors in their evaluation of acquisition results. We also find that CSR strategies have a negative impact. However, we find that the establishment of board committees and the implementation of the NRE Act, which may have led to increased transparency of information, have had a positive impact.