Operating Performance of Emerging Market Acquirers: Corporate Governance Issues

Détails

ID Serval
serval:BIB_29DF70E3722D
Type
Article: article d'un périodique ou d'un magazine.
Collection
Publications
Titre
Operating Performance of Emerging Market Acquirers: Corporate Governance Issues
Périodique
Emerging Markets Finance and Trade
Auteur⸱e⸱s
Yen T.-Y., Chou S., André P.
ISSN
1540-496X
Statut éditorial
Publié
Date de publication
07/2013
Peer-reviewed
Oui
Volume
49
Numéro
s3
Pages
5-19
Langue
anglais
Résumé
This study examines whether from the late fifth to the peak of the recent sixth acquisition wave, acquiring firms in emerging economies created operating performance following transactions. The authors analyze whether the degree of threat from corporate governance and the legal environment influences value creation. Based on ninety-eight merger and acquisition deals from 1998 to 2006, this paper concludes that emerging market acquirers typically have good operating performance before transactions occur, but that the average adjusted operating performance over a three-year period following a merger transaction shows little improvement. In addition, the square relationship that exists between postacquisition performance and the level of ownership concentration provides evidence to support both the incentive and the tunneling effects of large shareholders. Furthermore, there is no significant difference in performance improvement related to the legal framework of the acquirers' home countries, but the legal quality of target nations does have an impact on acquisition performance. Finally, our results on firm-specific governance mechanisms complicate the usefulness of audit committees on company boards but support the crucial role of independent directors. The results for country-specific legal systems confirm that a secure legal environment can help curb the practice of using ownership to extract private benefits and lead to better performance by emerging market acquirers, although legal enforcement from public institutions that is too strong reduces value.
Mots-clé
Corporate governance, Emerging markets, Legal institutions, Mergers and acquisitions, Operating performance, Ownership structure
Web of science
Création de la notice
29/04/2016 14:37
Dernière modification de la notice
20/08/2019 13:09
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