Publication:
Productivity and spillover effect of merger and acquisitions in Malaysia
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Date
2015
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Abstract
This paper aims to examine the productivity and spillover effect of Malaysian horizontal merger and acquisition (M&A) activities in the long run. In terms of analytical tools, economic value added (EVA) and data envelopment analysis (DEA) are used. The results of this study reveal that M&As in the absence of antitrust laws could be driven by managerial self-interest to create market power instead of realizing synergistic gains. Also, in Malaysia, the non-merging rival firms have significantly higher productivity improvement than the control bidder firms, and therefore, this study has identified the spillover effect as a behavior of M&A reaction. This paper differs from previous studies in that it attempts not only to examine the real long-term gains of horizontal M&A activities in Malaysia but also the spillover effects of M&A activities on similar but non-merging firms.
Keywords
Malaysia , DEA , EVA , Government policy , Merger
Citation
Nai, C. K., Hassan, M. K., Hassan, T., & Ramadili Mohd, S. M. (2015). Productivity and spillover effect of merger and acquisitions in Malaysia. Management Research Review, 38(3), 320-344. https://doi.org/10.1108/MRR-07-2013-0178
Publisher
Emerald