Long-term performance of mergers and acquisitions in ASEAN countries

Rao‐Nicholson, Rekha; Salaber, Julie; Cao, Tuan Hiep

doi:10.1016/j.ribaf.2015.09.024

Cited by 68 publications

(55 citation statements)

References 102 publications

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“…Many past studies on post-merger performance that employed accounting ratios and were conducted during the last decades supported an improvement in the corporate performance after the M&As action (Cosh et al, 1980;Parrino and Harris, 1999;Vijayakumar and Sridevi, 2013;Muhammad and Zahid, 2014;Oruc Erdogan and Erdogan, 2014;Rao-Nicholson et al, 2016), while others claimed that there was a deterioration in the post-merger firm performance (Meeks, 1977;Salter and Weinhold, 1979;Mueller, 1980;Kusewitt, 1985;Ravenscraft and Scherer, 1987;Dickerson et al, 1997;Sharma and Ho, 2002;Oduro and Agyei, 2013), and some others concluded a "zero" result or ambiguous results from the M&As action (Kumar, 1984;Healy et al, 1992;Chatterjee and Meeks, 1996;Ghosh, 2001;Srivastava and Prakash, 2014;Rodionov and Mikhalchuk, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

Mergers, taxation and accounting performance: Some evidence from Greece

Pazarskis¹,

Drogalas²,

Koutoupis³

2017

J. Account. Taxation

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The study examines the merger effects on the accounting performance of Greek firms, in parallel with their taxation impact, during the period of economic crisis in Greece. The study analyses twelve accounting measures from financial statements and financial ratios of a sample of Greek listed firms in the Athens Exchange that carried out one merger in the period from 2010 to 2015 as acquirers. The results revealed that none of the twelve examined accounting measures have changed significantly due to the merger event, one year after the merger transaction. Different results are proposed regarding the impact of the type of industry, as the findings of the study indicate a better accounting performance for the constructions firms than the others from our sample. Furthermore, the study investigates the impact of the new Greek Income Tax Code (GITC) (Law 4172/2013) that refers to the corporate restructuring in Greece. There is evidence that there is some effect from the new GITC and it provides further opportunities for capital gains, not subject to tax from mergers, during the period of the economic crisis in Greece.

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Section: Literature Reviewmentioning

confidence: 99%

Mergers, taxation and accounting performance: Some evidence from Greece

Pazarskis¹,

Drogalas²,

Koutoupis³

2017

J. Account. Taxation

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“…The growth of EMF cross-border acquisitions has led to a closer examination of their acquisition processes, post-acquisition performances and post-acquisition integrations (Buckley et al, 2007;Buckley, Forsans & Munjal, 2012;Gubbi, Aulakh, Ray, Sarkar & Chittoor, 2010;Li, 2007;Nicholson & Salaber, 2013, 2014Rao-Nicholson, Salaber & Cao, 2015;Yaprak & Karademir, 2010). Research into the standardization/adaptation strategies adopted by EMFs in the branding of their acquisitions in order to streamline their global marketing strategies is pertinent as EMFs try to mitigate any 'latecomer' issues in the international business world by acquiring incumbent firms in both developed and developing markets.…”

Section: Introductionmentioning

confidence: 99%

Standardization versus adaptation of global marketing strategies in emerging market cross-border acquisitions

Rao‐Nicholson

Khan

2017

IMR

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). AbstractPurpose: The recent increase in the presence of emerging-market firms (EMFs) in global markets requires a closer examination of their international marketing strategies (including branding). This paper examines the factors behind the standardization or adaptation of global marketing strategies adopted by EMFs for their cross-border acquisitions.Methodology/Approach: This paper examines the determinants of the marketing strategies adopted by Indian and Chinese firms for their cross-border acquisitions. The drivers of the standardization/adaptation of marketing strategies (including branding) are identified using both quantitative data collected in 168 cross-border acquisitions conducted by the EMFs mentioned above and the institutional theory and organizational identity literature.Findings: Institutional factors have a stronger effect than organizational identities on global marketing strategies, including branding. The standardization of the EMFs' marketing strategies is driven by the private statuses of the acquirers, legal distances, target countries' 2 economic development, and the ethnic ties that exist between the home and host countries.The acquirers' decisions to retain the targets' brand identities, thus adapting their global marketing strategies, is related to the cultural distances, economic freedom distances and sizes of the targets. Research limitations/implications:In this study, two large emerging markets-India and China-are used to gather the empirical data; future works can expand upon this line of research and examine other EMFs.Practical Implications: The acquiring companies have to decide whether to adopt an adaption marketing strategy, with reference to the acquired targets' local stakeholder requirements, or to incorporate their targets' brands into their own global marketing strategies.

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“…Extensive analysis of the M&A performance in the ASEAN region (Rao-Nicholson et al, 2015) confirms that during the periods of economic growth M&A transactions tend to have a negative influence on the operating performance of the acquirers, however, under conditions of economic turmoil acquisitions provide additional resources allowing the acquirers to better adapt themselves to a highly volatile environment.…”

Section: Performance Record Of Private Companies Prior To An Ipo or Amentioning

confidence: 95%

Analysis of the IPO Valuation Premium Puzzle: the Factor of Information Asymmetry

Osiichuk

2016

Zeszyty Naukowe Uniwersytetu Szczecińskiego Finanse Rynki Finansowe Ubezpieczenia

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Based on existing empirical evidence and the theoretical model developed by Akerlof (1970), the paper offers an explanation of the IPO valuation premium puzzle. When choosing between an IPO and a sellout as possible options of going public, an increasing number of companies prefer the latter despite the fact that the IPO potentially offers higher valuation premiums. The conclusions derived by means of a critical review of the empirical literature suggests that this phenomenon is mainly shaped by the factor of information asymmetry, which prompts the analogy with the 'lemons' market. Akerlof's model helps clarify the IPO valuation premium puzzle, however, some important deviations from the predictions of the normative analysis are observed in practice, which, as demonstrated in the paper, can be explained by the influence of behavioural factors. We postulate that the validity of the theoretical models, which explain the valuation puzzles, hinges upon the assumptions regarding market efficiency and rationality of the market participants. We systematize those assumptions and make conclusions regarding their relevance in case of the phenomenon in question. The paper explains how the market mechanisms, for example, the dual-track IPOs, allow overcoming the problem of information asymmetry and, possibly, eliminating the valuation anomalies.

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Long-term performance of mergers and acquisitions in ASEAN countries

Cited by 68 publications

References 102 publications

Mergers, taxation and accounting performance: Some evidence from Greece

Mergers, taxation and accounting performance: Some evidence from Greece

Standardization versus adaptation of global marketing strategies in emerging market cross-border acquisitions

Analysis of the IPO Valuation Premium Puzzle: the Factor of Information Asymmetry

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