Does investors react in long-term? The case of Malaysian acquisition

Patterns of Value Creation in Strategic Acquisitions for Growth

“…The difference in the market reaction for acquirers with different financial performance does not show statistically significant power for the entire data sample, but is significant for international bidders in the short and mid-term event windows, which implies that international acquirers were more focused on the enhancement of growth potential and chose the strong performing targets to accelerate it. These findings extend and advance the current M&A research that focuses on the analysis of market-based performance (e.g., Cefis et al, 2020;Adnan, 2018;Ishak et al, 2017;Dell'Acqua et al, 2018;Damijan et al, 2015;Mortal & Shill, 2015;Li-Yu et al, 2015;Brune et al, 2015, Martynova & Renneboog, 2011Alexandris et al, 2012).…”

“…Numerous empirical studies (e.g., Cefis et al, 2020;Adnan, 2018;Ishak et al, 2017;Dell'Acqua et al, 2018;Damijan et al, 2015;Mortal & Shill, 2015;Li-Yu et al, 2015;Brune et al, 2015) as well as newly developed dynamic theoretical models (de Andrés et al, 2017;Arikan & Stulz, 2016;Hackbarth & Morellac, 2008;Margsiri et al, 2008;Berk et al, 1999) have not found an explanation what factors determine the success of external growth, yet. In addition to that, they often deliver highly contradicting results as they apply different determinants in their analysis, which leads to an even stronger confusion rather than organised knowledge how to grow externally.…”

Government Ownership and Managers’ Role: Effect to Acquisition Return Among High-Technology Companies

“…Previous study by Mat-Rahim and Pok (2013) focused on the performance of various acquirer companies that gain significant positive returns for the short term during three-wave condition economies (Pre-bull, Bull and Bear), whereas a study by Ishak et al (2020a;2020b) only focused on the performance of shortand long-term returns from various acquirer companies towards ownership and governance structures which create positive returns to shareholder wealth. This study, however, attempts to provide more comprehensive variables such as the exclusive role of government ownership and the manager's role, particularly in high technology acquiring companies key factors influencing shareholders' wealth and value creation.…”

“…A passive blockholder is not represented on the board whilst an aggressive blockholder is. An aggressive blockholder is projected to play a crucial role in monitoring managerial performance as highlighted by Ishak et al (2020a;2020b) in their studies.…”