Revenue enhancement and wealth effects of mergers and acquisitions in Asian emerging markets

Jianyu Ma, José A. Pagán, Yun Chu

Research output: Contribution to journalArticle

Abstract

Revenue enhancement and value creation are core issues of mergers and acquisitions (Mamp;A). Revenue enhancing synergy associated with crossindustry M&A is supported by Asian emerging markets. Both within-industry M&A and cross-industry M&A deals realise significant positive abnormal returns. The difference between the two categories of M&A is statistically significant in a three-day window, but not statistically significant in a two-day window. Information leakages may be driving the larger valuation effects because a three-day window includes one day before the announcement date. Since large firms tend to diversify their business, the result that cross-industry M&A deals realise lower abnormal returns than within-industry may be driven by the firm size effect.

Original languageEnglish (US)
Pages (from-to)179-194
Number of pages16
JournalInternational Journal of Revenue Management
Volume4
Issue number2
DOIs
StatePublished - May 2010

Keywords

  • Abnormal returns
  • Emerging markets
  • Mamp;A
  • Mergers and acquisitions
  • Revenue enhancement
  • SIC
  • Standard Industry Code

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Economics and Econometrics
  • Strategy and Management

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