The effect of partial merger & acquisition activities on target firm’s performance: a case study from banking and finance industry in Vietnam
Main Article Content
Abstract
Using 25 M&A transactions in banking and finance industry during the period 2005-2013, we examine the impact of partial M&A deals on performance of target firms in banking and finance industry in Vietnam. We find that most of M&A transactions in banking and finance industry in Vietnam are partial transactions. Moreover, in term of performance, the partial M&A transactions have a significant negative impact on ROE, ROA, and EPS of the target firms.
Article Details
Keywords
Partial acquisitions, banking and finance industry
References
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2. Datta, S., M. Iskandar-Datta and K. Raman (2001). Executive compensation and corporate acquisition decision, Journal of Finance 56, 2299-2336
3. Ismail, T.H., Abdou, A.A. & Annis, R.M (2011). Review of Literature Linking Corporate Performance to Mergers and Acquisitions, The Review of Financial and Accounting Studies, ISSN 1450 – 2812, Issue 1, 89 – 104.
4. Limmack, R.J. (1991). Corporate mergers and shareholder wealth effects: 1977-1986, Accounting and Business Research 21, 239-251
5. Loughran, T. and Anand M. Vijh, 1997, Do long term shareholders benefit from corporate acquisitions? Journal of Finance 52, 1765-1790
6. Ravenscraft, D. J., and Scherer, F. M. (1989). The profitability of mergers. International Journal of Industrial Organization, 7(1), 101–116.
7. Saboo, S. and Gopi, S. (2009). Comparison of Post-Merger Performance of Acquiring Firms (India) Involved in Domestic and Cross-Border Acquisitions”, MPRA Paper No. 19274, University Library of Munich, Munich
8. Yeh, T. M., & Hoshino, Y. (2000). The effects of mergers and acquisitions on Taiwanese corporations. Review of Pacific Basin Financial Markets and Policies, 3(2), 183–199.1.