LAW AND ECONOMICS : FIRMS VALULATION -COMPETITION POLICY - HARM - IMPOSITION - PECUNIARY / NON-PECUNIARY SANCTIONS

The impact of competition policy on firms’ valuation

Une analyse statistique des décisions rendues par le Conseil de la concurrence entre 1992 et 2000 montre que la politique de la concurrence a eu un impact important sur les entreprises sanctionnées, bien supérieur au dommage directement infligé par les amendes, au demeurant modestes au cours de cette période. En moyenne, à l’occasion d’événements tels qu’une audition par la DGCCRF, une saisine ministérielle du Conseil de la concurrence, ou une décision infligeant une sanction, le cours de bourse des entreprises concernées diminuait de manière significative. Ces résultats suggèrent que la politique de la concurrence parvenait à modifier le comportement des entreprises d’une manière importante.

1. This article summarises the findings of a recent study of the impact of competition proceedings before the Conseil de la concurrence on the share price of firms, between 1992 and 2000. We first summarise the findings of similar studies about antitrust proceedings in the US and at the European level (section I), before presenting our method of analysis (section II) and the results (section III). I. The impact of antitrust proceedings: A brief survey of existing findings 2. While the theoretical foundation for competition policy is clear, measuring its actual impact on the economy is an arduous task. To some extent, this is because a large part of this impact lies in its deterrent properties. Efficient merger control deters firms from considering mergers the only rationale of which

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David Spector, The impact of competition policy on firms’ valuation, December 2008, Concurrences Review N° 4-2008, Art. N° 22427, www.concurrences.com

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