Cover Image

Long run stock performance of Malaysian acquirers

Mergers and acquisitions (M&A) is one of the largest forms of corporate investment (Masulis, Wang & Xei, 2007). Acquisitions, especially the large ones, have long term consequences on the well-being of shareholder and other stakeholders as they are risky in nature. Existing studies provid...

Full description

Saved in:
Bibliographic Details
Main Authors: Kadir @ Shahar, Hanita, Taufil Mohd, Kamarun Nisham, Ishak, Nor Hamiza
Format: Conference or Workshop Item
Language:English
Published: 2016
Subjects:
HB Economic Theory
Online Access:http://repo.uum.edu.my/25342/1/ICoGBSE%202016%20350-343.pdf
http://repo.uum.edu.my/25342/
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.uum.repo.25342
record_format eprints
spelling my.uum.repo.253422018-12-30T04:15:36Z http://repo.uum.edu.my/25342/ Long run stock performance of Malaysian acquirers Kadir @ Shahar, Hanita Taufil Mohd, Kamarun Nisham Ishak, Nor Hamiza HB Economic Theory Mergers and acquisitions (M&A) is one of the largest forms of corporate investment (Masulis, Wang & Xei, 2007). Acquisitions, especially the large ones, have long term consequences on the well-being of shareholder and other stakeholders as they are risky in nature. Existing studies provide substantial evidence on poor performance following completion of merger deals (see for example Aggrawal and Jaffe, 2000 for an extensive literature review). Most of the evidence on mergers in the context of developed countries document that for long-run stock performance, the average abnormal returns for bidding firms are at best zero return (Martynova & Renneboog, 2008). This result shows that M&As do not add value to the bidding firms. In this study, we focus on Malaysia, a developing economy where many firms are controlled by families. The sample is composed of acquisitions during the period 2000-2013. We find that on average acquiring firms neither create nor destroy long term values after controlling for the performance of a control group. This result shows that investors reacted rationally in valuing the bidding firms after the announcements of the completions of the acquisitions. Thus, at least in the long run performance of acquisitions, the capital market in Malaysia is informationally efficient. 2016 Conference or Workshop Item PeerReviewed application/pdf en http://repo.uum.edu.my/25342/1/ICoGBSE%202016%20350-343.pdf Kadir @ Shahar, Hanita and Taufil Mohd, Kamarun Nisham and Ishak, Nor Hamiza (2016) Long run stock performance of Malaysian acquirers. In: Proceeding 6th International Conference on Global Social Entrepreneurship (Kota Bharu) 2016, Kota Bharu ,Kelantan.
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HB Economic Theory
spellingShingle HB Economic Theory
Kadir @ Shahar, Hanita
Taufil Mohd, Kamarun Nisham
Ishak, Nor Hamiza
Long run stock performance of Malaysian acquirers
description Mergers and acquisitions (M&A) is one of the largest forms of corporate investment (Masulis, Wang & Xei, 2007). Acquisitions, especially the large ones, have long term consequences on the well-being of shareholder and other stakeholders as they are risky in nature. Existing studies provide substantial evidence on poor performance following completion of merger deals (see for example Aggrawal and Jaffe, 2000 for an extensive literature review). Most of the evidence on mergers in the context of developed countries document that for long-run stock performance, the average abnormal returns for bidding firms are at best zero return (Martynova & Renneboog, 2008). This result shows that M&As do not add value to the bidding firms. In this study, we focus on Malaysia, a developing economy where many firms are controlled by families. The sample is composed of acquisitions during the period 2000-2013. We find that on average acquiring firms neither create nor destroy long term values after controlling for the performance of a control group. This result shows that investors reacted rationally in valuing the bidding firms after the announcements of the completions of the acquisitions. Thus, at least in the long run performance of acquisitions, the capital market in Malaysia is informationally efficient.
format Conference or Workshop Item
author Kadir @ Shahar, Hanita
Taufil Mohd, Kamarun Nisham
Ishak, Nor Hamiza
author_facet Kadir @ Shahar, Hanita
Taufil Mohd, Kamarun Nisham
Ishak, Nor Hamiza
author_sort Kadir @ Shahar, Hanita
title Long run stock performance of Malaysian acquirers
title_short Long run stock performance of Malaysian acquirers
title_full Long run stock performance of Malaysian acquirers
title_fullStr Long run stock performance of Malaysian acquirers
title_full_unstemmed Long run stock performance of Malaysian acquirers
title_sort long run stock performance of malaysian acquirers
publishDate 2016
url http://repo.uum.edu.my/25342/1/ICoGBSE%202016%20350-343.pdf
http://repo.uum.edu.my/25342/
_version_ 1644284296474656768
score 13.211869

Similar Items