Quantitative Findings on the Impacts of State Ownership on M&A Performance

Nga Pham () and Kok-Boon Oh ()
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Nga Pham: Monash University
Kok-Boon Oh: eGalaxy Solutions

Chapter Chapter 7 in State on Board!, 2021, pp 161-188 from Springer

Abstract: Abstract This chapter evaluates the quantitative study’s findings on the impact of state ownership in the acquiring firm and M&A performance. We examined state ownership in various aspects, including the level of state ownership, whether the state was the largest shareholder and the type of agent managing the state capital. M&A performance was assessed based on the cumulative abnormal returns earned by shareholders around the announcement—the wealth impact; post-M&A change in earnings growth—the growth impact; and post-M&A change in return on assets—the efficiency impact. Overall, we find that state ownership was negatively related to firms’ M&A performance. M&As of firms with substantial state ownership or those having the state as the largest shareholder did not create shareholder wealth.

Keywords: SOE; Corporate governance; Emerging markets; Vietnam; State ownership; M&A performance (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-16-3525-0_7

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DOI: 10.1007/978-981-16-3525-0_7

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