scholarly journals Wealth effects of business takeover announcements: The case of Australian acquirers’ shareholders

2010 ◽  
Vol 8 (1) ◽  
pp. 758-771
Author(s):  
Shrimal Perera ◽  
Jayasinghe Wickramanayake ◽  
Ankit Mehta
Keyword(s):  
Mergers And Acquisitions ◽  
Abnormal Returns ◽  
Wealth Effect ◽  
Wealth Effects ◽  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Cross Border ◽  
Short Horizon

Australia has accounted for over 51 percent of mergers and acquisitions in the Asia Pacific region (excluding Japan) during 2004-2006. This paper investigates the short-horizon and long-horizon wealth effects experienced by shareholders of Australian acquirers following these domestic and cross-border business takeover announcements. The sample consists of 197 announcements. Results for domestic acquisitions suggest that acquirers’ shareholders endure abnormal returns in the range of -1.07% and -1.86% per day in the short-horizon. The long-horizon wealth effects, however, were found to be inconclusive. Results for cross-border acquisitions show that acquirers’ shareholders endure abnormal returns in the range of 1.02% and 1.26% per day in the short-horizon. This positive wealth effect, however, dissipates in the long-horizon.

scholarly journals Cross-Border M&A Motives and Home Country Institutions: Role of Regulatory Quality and Dynamics in the Asia-Pacific Region

2021 ◽  
Vol 14 (10) ◽  
pp. 468
Author(s):  
Peter Zámborský ◽  
Zheng Joseph Yan ◽  
Erwann Sbaï ◽  
Matthew Larsen
Keyword(s):  
Institutional Environment ◽  
Home Country ◽  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Cross Border ◽  
Regulatory Quality ◽  
Using Data ◽  
Over Time

The purpose of this paper is to analyze the relationship between home country institutions and cross-border merger and acquisition (M&A) motives of MNEs from the Asia-Pacific region, with a focus on the role of regulatory quality and dynamics. We empirically examine how M&A motives are affected by elements related to risk of the institutional environment of the acquiring firm’s home country regulatory quality over time. The study is grounded in the general theory of springboard MNEs, and the institutional views of cross-border operations, namely the institutional escapism and institutional fostering perspectives. Using data on over 700 cross-border M&As of European firms by Asia-Pacific MNEs in 2007–2017, we analyze the rationales for these deals and their relationship to the institutional characteristics of the buyers’ home countries including regulatory quality and voice and accountability. We found that the quality of home country regulatory environment is significantly related to domestic firms’ motivation for international M&As. However, the significance and sign of the effects differ for different types of motives and over time. Our findings contribute to the literature on general versus emerging MNE-specific internationalization theories (particularly the theory of springboard MNEs) by expounding on the types and dynamics of cross-border M&A motives.

Uncertainty avoiding behavior and cross-border acquisitions in the Asia-Pacific region

2017 ◽  
Vol 41 ◽  
pp. 99-112 ◽  
Author(s):  
Marc Bremer ◽  
Akio Hoshi ◽  
Kotaro Inoue ◽  
Kazunori Suzuki
Keyword(s):  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Cross Border

scholarly journals CURRENT TRENDS IN THE MARKET OF MERGERS AND ACQUISITIONS IN THE COUNTRIES OF THE ASIA-PACIFIC REGION

2021 ◽  
Author(s):  
Tetiana Rodionova ◽  
Zlata Podolyan
Keyword(s):  
Mergers And Acquisitions ◽  
Multinational Corporations ◽  
Production Capacity ◽  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Current Trends ◽  
Factors Influencing ◽  
Innovative Solutions ◽  
Investment Object

Mergers and acquisitions are understood as a global trend associated with global corporate restructuring in various industries, an important part of any business cycle. The strategic motives for concluding M&A deals are primarily associated with rapid growth and with the extraction of access to intangible assets, in particular, to human, structural and customer capital. The merger can help firms cope with the threat of multinational corporations and compete internationally. Companies in the Asia-Pacific region have always distinguished themselves by applying innovative solutions to expand production capacity and attract investment. Therefore, the purpose of this study was to analyze current trends in the M&A market in the Asia-Pacific region. The article analyzed the dynamics, structure of the M & A market and identified current trends in the M & A market in the Asia-Pacific region. Factors influencing the behavior of investors were considered. Also, one of the main factors influencing the market of mergers and acquisitions was the effect of COVID-19 . Since it was effec radically reformatted the strategies of companies and forced a complete overhaul of investment behavior. Asia-Pacific companies demonstrate throughout COVID-19 pandemic ability to overcome crisis by Implementing Innovative solutions. The pandemic, the strategy of changing the climate, as well as the normative and legislative changes, gave the mail for a glance at the strategies of development and values. The company policy focuses its respect on the goals of the development and the principles of ESG. ESG has become a critically important area for M&A facilities. As a result of the study, a regression analysis was performed and built a linear regression model of the influence of ESG factors on the beta of the company. For the analysis, the indicators of 30 companies in the Asia-Pacific region were used. The beta indicator was chosen based on the views of the investor, since the market beta reflects the volatility of the market, that is, the behavior of the investor. The results of the study confirmed the growing influence of ESG in the selection of an investment object.

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