Post Performance of Malaysian Acquired Firms: A Preliminary Study

Nor, Fauzias Mat; Ramlee, Shamsubaridah

doi:10.17576/pengurusan-1995-14-01

Cited by 4 publications

References 2 publications

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Motivation and Outcome of Malaysian Takeovers: An International Perspective

Ali

Gupta²

1999

Vikalpa: The Journal for Decision Makers

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This paper examines the potential motives and effects of corporate takeovers that occurred in Malaysia during the period 1980 through 1993. The Mueller's methodology, which has been adopted for Australia, USA, UK, and five European countries, is employed in order to provide an analysis of the Malaysian takeovers on an international perspective. The findings indicate that the Malaysian takeovers were motivated by size, growth, and profit considerations, and supported by the desire of having a balanced leverage, thus favouring the eclectic theory of takeovers. In terms of the outcomes, the paper finds that the acquiring firms have achieved larger size at the expense of reduced profits both for themselves and the acquired firms. In contrast to other countries, the bidder firms in Malaysia, in general, have lower profitability, higher risk, and lower leverage vis-a-vis the control bidder firms. Also, in Malaysia, the target firms have significantly better pre-takeover growth and profit performance than the control target firms, which is quite the opposite in other countries.

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Motivation and Outcome of Malaysian Takeovers: An International Perspective

Ali

Gupta²

1999

Vikalpa: The Journal for Decision Makers

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Gifted Kids Or Pushy Parents? Foreign Acquisitions And Plant Performance In Indonesia

Arnold¹,

Javorcik²

2005

Policy Research Working Papers

133

157

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This paper uses micro data from the Indonesian Census of Manufacturing to analyze the causal relationship between foreign ownership and plant productivity. To control for the possible endogeneity of the FDI decision, a difference-in-differences approach is combined with propensity score matching. An advantage of this method, which has not been previously applied in this context, is the ability to follow the timing of observed changes in productivity and other aspects of plant performance. The results suggest that foreign ownership leads to significant productivity improvements in the acquired plants. The improvements become visible in the acquisition year and continue in subsequent periods. After three years, the acquired plants outperform the control group in terms of productivity by 34 percentage points. The data also suggest that the rise in productivity is a result of restructuring, as acquired plants increase investment outlays, employment and wages. Foreign ownership also appears to enhance the integration of plants into the global economy through increased exports and imports.

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Methods of Payment, Direct Takeovers and Privately-Held Targets: Evidence of Bidder's Return on Takeovers

2006

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This study examines whether the proposed acquisition announcement on methods of payment has an impact on the bidder's returns behaviour. The analysIs uses the event study technique. the naive model. a model that is based on the market model with constrained a = 0 and f3 = 1 to compute the abnormal returns and to evaluate the effects of the proposed acquisitIOn announcement on the bidder's returns. The study finds that Malaysian investors appear to he not in favour of cash-based acquisition to be done directly by the bidding company as shown by the significant negative results on the bidder's average residuals after the announcement date. The same goes for acquisition that targets private limited company. The insignificant results obtained on the announcement dale itself may give an Indication that such announcements do not really bring "surprisingly good news" to investors. However, the significant positive results of the bidder's average reSidual on acquisition by equity on and after the announcement. either to be done directly or on private limited takeover, may give an implication that the use of equity conveys favourable information about the bidding firms and are value relevant. ABSTRAK Kajian ini menguji sarna ada pengumuman ten tang cadangan pengambilalihan mengikut cara membayar mempunyai kesan terhadap kelakuan pulangan syarikat pembida. Teknik kajian peristiwa berasaskan model pasaran dengan konstren a = 0 dan f3 = 1 telah digunakan untuk mengira pulangan luar biasa dan menilai kesan pengumuman cadangan pengambilalihan itu ke atas kelakuan pulangan pembida. Kajian mendapati. pelabur di Malaysia pada amnya tidak berkenan dengan pengambilalihan secara langsung berasaskan tunai sebagaimana yang ditunjukklln oleh keputusan negatif yang signifikan keatas purata sisa pembida selepas tarikh pengumuman. Kesan yang sama ditunjukkan bagi pengambilalihan yang mensasarkan syarikat sendirian berhad. Pulangan luar biasa yang tidak signifikan pada hari pengumuman menunjukkan bahawa pengambilalihan

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Post Performance of Malaysian Acquired Firms: A Preliminary Study

Cited by 4 publications

References 2 publications

Motivation and Outcome of Malaysian Takeovers: An International Perspective

Motivation and Outcome of Malaysian Takeovers: An International Perspective

Gifted Kids Or Pushy Parents? Foreign Acquisitions And Plant Performance In Indonesia

Methods of Payment, Direct Takeovers and Privately-Held Targets: Evidence of Bidder's Return on Takeovers

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