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Productivity and Spillover effect of merger and acquisitions in Malaysia

Author

Listed:
  • Nai Chiek Aik
  • M. Kabir Hassan
  • Taufiq Hassan
  • Shamsher Mohamed

Abstract

Purpose - – This paper aims to examine the productivity and spillover effect of Malaysian horizontal merger and acquisition (M&A) activities in the long run. Design/methodology/approach - – In terms of analytical tools, economic value added (EVA) and data envelopment analysis (DEA) are used. Findings - – The results of this study reveal that M&As in the absence of antitrust laws could be driven by managerial self-interest to create market power instead of realizing synergistic gains. Also, in Malaysia, the non-merging rival firms have significantly higher productivity improvement than the control bidder firms, and therefore, this study has identified the spillover effect as a behavior of M&A reaction. Originality/value - – This paper differs from previous studies in that it attempts not only to examine the real long-term gains of horizontal M&A activities in Malaysia but also the spillover effects of M&A activities on similar but non-merging firms.

Suggested Citation

  • Nai Chiek Aik & M. Kabir Hassan & Taufiq Hassan & Shamsher Mohamed, 2015. "Productivity and Spillover effect of merger and acquisitions in Malaysia," Management Research Review, Emerald Group Publishing Limited, vol. 38(3), pages 320-344, March.
  • Handle: RePEc:eme:mrrpps:v:38:y:2015:i:3:p:320-344
    DOI: 10.1108/MRR-07-2013-0178
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    Citations

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    Cited by:

    1. Ullah, Nazim & Mat Nor, Fauzias & Abu Seman, Junaidah & Uddin, Akther, 2018. "Do Merger and Acquisition Affects Acquirer Bank’s Performance? A Comparative Analysis of Pre and Post Performance," MPRA Paper 108574, University Library of Munich, Germany, revised 03 Jan 2018.
    2. Goodness C. Aye & Giray Gozgor & Rangan Gupta, 2020. "Dynamic and Asymmetric Response of Inequality to Income Volatility: The Case of the United Kingdom," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(3), pages 747-762, February.

    More about this item

    Keywords

    Malaysia; DEA; EVA; Government policy; Merger; G21; D24;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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