We found a match
Your institution may have rights to this item. Sign in to continue.
- Title
M&A Impetus: Analyzing Motivation and Synergy Determinants.
- Authors
Chao-Hsiung Lee; Tsung-Yi Liu; Ching-Chih Wu
- Abstract
We focus on two issues related to the US M&As from 1990 to 2014. First, we investigate the motivation of acquirers concerning different firm characteristics, operational performances, and corporate governance. Second, we analyze the long-term market performance after M&As and find factors affecting its long-term performance. The empirical results show that the acquirer's capital expenditure significantly affects the decision positively. In addition, we also find evidence that horizontal M&As positively impact acquiring firms' long-term performance significantly. This evidence implies that business-related M&As can create synergy. Finally, we find that the higher the major institutional shareholder's holding percentage, the better its long-term abnormal performance after M&As. In contrast, the higher the major institutional shareholder's holding density, the worse its long-term abnormal performance after the M&As.
- Subjects
MERGERS &; acquisitions; CORPORATE governance; MOTIVATION (Psychology); STOCKHOLDERS; CAPITAL investments
- Publication
International Review of Accounting, Banking & Finance, 2023, Vol 15, Issue 3, p20
- ISSN
1946-6404
- Publication type
Article