The performance of bidding companies in merger and acquisition deals: An empirical study of domestic acquisitions in Hong Kong and Mainland China

Ahmed, Rizwan Raheem; Chen, Yawen; Benjasak, Chonlakan; Gregoriou, Andros; Alrwashdeh, Nusiebeh Nahar Falah; Than, Ei Thuzar

doi:10.1016/j.qref.2020.09.003

Cited by 9 publications

(8 citation statements)

References 88 publications

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“…So results are in line with theory of corporate control. Results are in line with a recent study byAhmed et al (2020) who show that acquiring firms earn positive abnormal returns significantly. They have linked performance of bidding firm with bidding firm and market characteristics.…”

supporting

confidence: 92%

Impact of Acquisition on cost efficiency, operational hedging and returns of acquirer firms in Pakistan

Awan

Rizwan

Shah

2020

NRJSS

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The current study is aimed at checking the impact of the acquisition on the various short-run and long-run firm characteristics like abnormal returns, cost efficiency, and operational hedging of acquirer firms. Results have been analyzed for Pakistan Stock Exchange for a period of 2006 to 2019. The acquisition may signal the future prospects of both acquirer and target firms. The event study technique indicates the significant abnormal returns after 3 days of the acquisition announcement. However, pre-event statistics indicate abnormal returns for 5 out of 7 days before acquisition announcement. Researchers have calculated the cost efficiency scores for bidding firms three years prior to the acquisition and three years post-acquisition. Overall results suggest an improvement in the efficiency of the financial firms' overtime period. The non-financial sector is indicating opposite results where most of the firms are showing a declining trend in efficiency after the acquisition. Next, the impact of the acquisition on the operational volatility is checked. The empirical results have shown a large level decrease in the operational income volatility after the takeover deal. It shows that combined firms after acquisition brings the benefit of diversification thus reducing volatility and increasing operational hedging which may ultimately reduce financial hedging. The findings of the study may help regulators as well as acquiring companies to know the potential effects of the acquisition announcement.

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supporting

confidence: 92%

Impact of Acquisition on cost efficiency, operational hedging and returns of acquirer firms in Pakistan

Awan

Rizwan

Shah

2020

NRJSS

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“…For this reason, the present study used CAR to measure acquisition performance. The CAR was based on literature (Ahmed et al 2023) with the following formula:…”

Section: Methodsmentioning

confidence: 99%

Acquisition Motive, Stock Market Performance, and Slack Resources as Moderating Variable

Wisudanto,

Pitaloka,

Irmaulidiyah

2024

jabm

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Acquisition is a restructuring activity with different risks depending on the motive used by the company. This study aims to identify the relationship between acquisition motives and stock market performance moderated by slack resources in the acquirer companies. This study observed 65 companies in Indonesia listed on the Indonesia Stock Exchange that performed acquisitions in 2010 -2020. The data were analyzed using the multiple linear regression technique. The data were analyzed using the multiple linear regression technique. The study concluded that the exploratory motive negatively affected stock market performance. Meanwhile, the moderating variable of slack resources was reported to weaken the negative effect of exploratory motive on stock market performance. This research suggests managers should make a careful decision regarding the acquisition motives that will be used by a company. In addition, they must ensure sufficient slack resources during the acquisition as the process may impact the stock market performance. Thus, investors must carefully observe the acquisition motives and possible risks that might harm their investment.

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“…To achieve the expected goals, every company leader is obliged to improve employee performance and morale as optimally as possible so that the company's expected goals can be realized and successfully achieved properly. With the increase in employee performance, it is expected that the performance of the company will be improved Performance is one of the components that must be owned by an institution or company if it wants to achieve the goals that have been set (Ahmed et al, 2020;Ebrahimi et al, 2019;Elena-Iuliana & Maria, 2016;Mentzer & Konrad, 1991). In its activities, the organization or company must be able to improve performance from time to time, because this concerns the performance of the institution.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Compensation and Training on Work Performance that Has an Impact on Employee Performance

Andi

2022

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This study aims to determine the effect of compensation and training on work performance which has an impact on employee performance at PT Cahaya Pratama Mandiri in Cilegon Banten. The method used is explanatory research with a sample of 100 respondents. The analysis technique uses statistical analysis with regression, correlation, determination, and hypothesis testing. The results of this study Compensation has a significant effect on work performance by 36.4%, hypothesis testing obtained a significance of 0.000 <0.05. Training has a significant effect on job performance by 46.3%, hypothesis testing obtained a significance of 0.000 <0.05. Simultaneous compensation and training have a significant effect on work performance by 52.9%, hypothesis testing obtained a significance of 0.000 <0.05. Work achievement has a significant effect on employee performance by 31.0%, hypothesis testing obtained a significance of 0.000 <0.05.

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The performance of bidding companies in merger and acquisition deals: An empirical study of domestic acquisitions in Hong Kong and Mainland China

Cited by 9 publications

References 88 publications

Impact of Acquisition on cost efficiency, operational hedging and returns of acquirer firms in Pakistan

Impact of Acquisition on cost efficiency, operational hedging and returns of acquirer firms in Pakistan

Acquisition Motive, Stock Market Performance, and Slack Resources as Moderating Variable

The Effect of Compensation and Training on Work Performance that Has an Impact on Employee Performance

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