Long-term performance of mergers and acquisitions in ASEAN countries

Salaber, Julie, Rao-Nicholson, Rekha and Cao, Tuan H. 2016. Long-term performance of mergers and acquisitions in ASEAN countries. Research in International Business and Finance. 36, p. 373–387. doi:10.1016/j.ribaf.2015.09.024

TitleLong-term performance of mergers and acquisitions in ASEAN countries
AuthorsSalaber, Julie, Rao-Nicholson, Rekha and Cao, Tuan H.
Abstract

The study looks at mergers and acquisitions (M&As) in ASEAN countries and examines the post-M&A performance using data from 2001 to 2012. The industry-adjusted operating performance tends to decline in the 3 years following an M&A. Yet, the results suggest that M&As completed during the financial crisis are more profitable than those implemented before and/or after the crisis. We argue that this is mainly due to the synergies created between the firms’ resources during the crisis which augur well for firms’ economic performance. We find that, during the crisis, certain characteristics of the firms like the relative size of the target, cross-border nature of deals, acquirer's cash reserves and friendly nature of deals are important determinants of long-term post-M&A operating performance. However, for M&As during the crisis, there appears to be no relationship between performance and firms’ characteristics linked to M&A activity such as payment method, industry relatedness and percentage of target's share acquired.

KeywordsMergers and acquisitions; ASEAN; Operating performance; Financial crisis
JournalResearch in International Business and Finance
Journal citation36, p. 373–387
ISSN0275-5319
Year2016
PublisherElsevier
Accepted author manuscriptRIBF_2016_open.pdf
Digital Object Identifier (DOI)doi:10.1016/j.ribaf.2015.09.024
Publication dates
Published28 Sep 2015
PublishedJan 2016

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