Long-term Stock Return Performance, Malaysian Acquiring Firm, and Cross-border Acquisition

Md. Mahadi Hasan

Abstract


Using buy-and-hold abnormal returns (BHAR) approach measure of long-term shareholder’s wealth effect and Euclidean distance approach for identifying matching firms, the study investigated 176 CBA deals of Malaysian acquiring firms for the years 2004-2015. Both parametric tests (such as conventional t-statistics, skewness adjusted t-statistics, bootstrapping skewness adjusted t-statistics, and Multivariate of Analysis of Variance) and non-parametric statistical (such as Wilcoxon-Mann-Whitney test) tools were employed to analyse the data and test the hypotheses regarding the impact of CBA deals on acquiring firms’ performance. The research found that acquiring firm’s performance is significantly positive in the shorter period while negative or mixed in the longer period. Furthermore, performance of firm differ from industry to industry.

Keywords


Long-term Stock Return Performance, Buy-and-Holder Abnormal Return, Cross-Border Acquisitions, and Bursa Malaysia.

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References


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