IDEAS home Printed from https://ideas.repec.org/a/ids/afasfa/v12y2022i3p399-412.html
   My bibliography  Save this article

The long-term performance of post-merger and acquisition: evidence from Indonesia's stock market

Author

Listed:
  • Josua Tarigan
  • Jacqueline Evania
  • Devie Devie
  • Saarce Elsye Hatane

Abstract

This study evaluates the long-term share performance of firms over three years after they underwent merger and acquisition (M%A). This is happening since researchers failed to find answers in the short-term analysis and began looking for answers through long-term analysis. Most previous studies have been done either in big capital markets (US and the UK) or smaller capital markets such as Greece and Malaysia but not Indonesia. The share performance was measured through cumulative market adjusted abnormal return (CMAR) and buy and hold abnormal return (BHAR). The result of this study provides evidence of the presence of negative abnormal returns of the merged and acquiring firms. Moreover, the results show that cash payments are preferable in comparison to the share settlement. The results also reveal that the firms which are owned by families tend to outperform the firms which are not owned by families.

Suggested Citation

  • Josua Tarigan & Jacqueline Evania & Devie Devie & Saarce Elsye Hatane, 2022. "The long-term performance of post-merger and acquisition: evidence from Indonesia's stock market," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 12(3), pages 399-412.
    • Handle: RePEc:ids:afasfa:v:12:y:2022:i:3:p:399-412
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=124249
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:afasfa:v:12:y:2022:i:3:p:399-412. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=214 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.