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Long-term performance of mergers and acquisitions in ASEAN countries

Rao-Nicholson, Rekha; Salaber, Julie; Cao, Tuan Hiep

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Authors

Rekha Rao-Nicholson

Julie Salaber

Tuan Hiep Cao



Abstract

© 2015 Elsevier B.V. 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.

Citation

Rao-Nicholson, R., Salaber, J., & Cao, T. H. (2016). Long-term performance of mergers and acquisitions in ASEAN countries. Research in International Business and Finance, 36, 373-387. https://doi.org/10.1016/j.ribaf.2015.09.024

Journal Article Type Article
Acceptance Date Sep 10, 2015
Online Publication Date Sep 28, 2015
Publication Date Jan 1, 2016
Publicly Available Date Mar 29, 2024
Journal Research in International Business and Finance
Print ISSN 0275-5319
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 36
Pages 373-387
DOI https://doi.org/10.1016/j.ribaf.2015.09.024
Keywords ASEAN countries, mergers, finance
Public URL https://uwe-repository.worktribe.com/output/916008
Publisher URL http://dx.doi.org/10.1016/j.ribaf.2015.09.024

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