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Long-term performance of mergers and acquisitions in ASEAN countries

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

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.

Suggested Citation

  • Rao-Nicholson, Rekha & Salaber, Julie & Cao, Tuan Hiep, 2016. "Long-term performance of mergers and acquisitions in ASEAN countries," Research in International Business and Finance, Elsevier, vol. 36(C), pages 373-387.
  • Handle: RePEc:eee:riibaf:v:36:y:2016:i:c:p:373-387
    DOI: 10.1016/j.ribaf.2015.09.024
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    Cited by:

    1. Thenmozhi, M. & Narayanan, P.C., 2016. "Rule of law or country level corporate governance: What matters more in emerging market acquisitions?," Research in International Business and Finance, Elsevier, vol. 37(C), pages 448-463.
    2. repec:eee:iburev:v:26:y:2017:i:6:p:1184-1195 is not listed on IDEAS
    3. repec:eee:pacfin:v:48:y:2018:i:c:p:144-161 is not listed on IDEAS
    4. repec:rfa:aefjnl:v:5:y:2018:i:3:p:34-48 is not listed on IDEAS
    5. Dah, Mustafa A., 2016. "Governance and firm value: The effect of a recession," Research in International Business and Finance, Elsevier, vol. 37(C), pages 464-476.

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