Motives, governance, and long-term performance of mergers and acquisitions in Asia

This study aims to examine the long-term performance of post-Mergers and Acquisitions (M&A) based on the motive’s category. This study also examines whether the governance at firm-level and country-level affects the relationship between motives and long-term performance of M&A. This study us...

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Autores principales:	Puspita Rani, Elvia R. Shauki, Darminto Darminto, Ruslan Prijadi
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2020
Materias:	m&a motives long-term performance governance synergy motives agency motives Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/ee3366457da143fd885609e249052d53
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spelling	oai:doaj.org-article:ee3366457da143fd885609e249052d532021-12-02T14:41:30ZMotives, governance, and long-term performance of mergers and acquisitions in Asia2331-197510.1080/23311975.2020.1791445https://doaj.org/article/ee3366457da143fd885609e249052d532020-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2020.1791445https://doaj.org/toc/2331-1975This study aims to examine the long-term performance of post-Mergers and Acquisitions (M&A) based on the motive’s category. This study also examines whether the governance at firm-level and country-level affects the relationship between motives and long-term performance of M&A. This study uses a sample of 301 completed M&A transactions of Asian companies in 11 countries from 2002 to 2012 and analyses the data using the cross-sectional moderated regression method. This study measures and categorizes M&A motives into synergy and agency categories using two alternate ways, which first using the stock market reaction data of acquirer and target at the M&A announcement period estimated by applying an event study methodology, and the second using the combination of the stock market reaction data and some accounting variables through logistic regression analysis. This study finds that synergy-motivated M&A results in significantly higher long-term performance post-M&A than agency-motivated M&A. It also proves that the positive effect of M&A motives on the long-term performance post-M&A is significantly higher when companies have better firm-level governance quality, but a similar result cannot be proved for country-level governance. This study provides a cross-country M&A study in the Asian region that has an essential role in global M&A activity in recent years. Considering the possibility of changes in company structure and environment post-M&A, this study contributes to provides an insight related to the role of the governance quality post-M&A as a monitoring tool in the realization of M&A predicted gain that can improve M&A performance.Puspita RaniElvia R. ShaukiDarminto DarmintoRuslan PrijadiTaylor & Francis Grouparticlem&a motiveslong-term performancegovernancesynergy motivesagency motivesBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 7, Iss 1 (2020)
institution	DOAJ
collection	DOAJ
language	EN
topic	m&a motives long-term performance governance synergy motives agency motives Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	m&a motives long-term performance governance synergy motives agency motives Business HF5001-6182 Management. Industrial management HD28-70 Puspita Rani Elvia R. Shauki Darminto Darminto Ruslan Prijadi Motives, governance, and long-term performance of mergers and acquisitions in Asia
description	This study aims to examine the long-term performance of post-Mergers and Acquisitions (M&A) based on the motive’s category. This study also examines whether the governance at firm-level and country-level affects the relationship between motives and long-term performance of M&A. This study uses a sample of 301 completed M&A transactions of Asian companies in 11 countries from 2002 to 2012 and analyses the data using the cross-sectional moderated regression method. This study measures and categorizes M&A motives into synergy and agency categories using two alternate ways, which first using the stock market reaction data of acquirer and target at the M&A announcement period estimated by applying an event study methodology, and the second using the combination of the stock market reaction data and some accounting variables through logistic regression analysis. This study finds that synergy-motivated M&A results in significantly higher long-term performance post-M&A than agency-motivated M&A. It also proves that the positive effect of M&A motives on the long-term performance post-M&A is significantly higher when companies have better firm-level governance quality, but a similar result cannot be proved for country-level governance. This study provides a cross-country M&A study in the Asian region that has an essential role in global M&A activity in recent years. Considering the possibility of changes in company structure and environment post-M&A, this study contributes to provides an insight related to the role of the governance quality post-M&A as a monitoring tool in the realization of M&A predicted gain that can improve M&A performance.
format	article
author	Puspita Rani Elvia R. Shauki Darminto Darminto Ruslan Prijadi
author_facet	Puspita Rani Elvia R. Shauki Darminto Darminto Ruslan Prijadi
author_sort	Puspita Rani
title	Motives, governance, and long-term performance of mergers and acquisitions in Asia
title_short	Motives, governance, and long-term performance of mergers and acquisitions in Asia
title_full	Motives, governance, and long-term performance of mergers and acquisitions in Asia
title_fullStr	Motives, governance, and long-term performance of mergers and acquisitions in Asia
title_full_unstemmed	Motives, governance, and long-term performance of mergers and acquisitions in Asia
title_sort	motives, governance, and long-term performance of mergers and acquisitions in asia
publisher	Taylor & Francis Group
publishDate	2020
url	https://doaj.org/article/ee3366457da143fd885609e249052d53
work_keys_str_mv	AT puspitarani motivesgovernanceandlongtermperformanceofmergersandacquisitionsinasia AT elviarshauki motivesgovernanceandlongtermperformanceofmergersandacquisitionsinasia AT darmintodarminto motivesgovernanceandlongtermperformanceofmergersandacquisitionsinasia AT ruslanprijadi motivesgovernanceandlongtermperformanceofmergersandacquisitionsinasia
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Motives, governance, and long-term performance of mergers and acquisitions in Asia

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