Lookup NU author(s): Dr Rekha Nicholson
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND).
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.
Author(s): Rao-Nicholson R, Salaber J, Cao TH
Publication type: Article
Publication status: Published
Journal: Research in International Business and Finance
Print publication date: 01/01/2016
Online publication date: 28/09/2015
Acceptance date: 10/09/2015
ISSN (print): 0275-5319
ISSN (electronic): 0275-5319
Publisher: Elsevier Inc.
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