Wealth Effects of Mergers and Acquisitions on Vietnamese Listed Firms

Nhat Chi Mai

No ctdzn, OSF Preprints from Center for Open Science

Abstract: The Vietnamese economy experienced its first major mergers and acquisitions (M&As) wave in the period from 2007 to 2013. This study analyses the wealth effects of M&As on Vietnamese listed firms. I use the event study method and apply the market model to evaluate the performance of target and acquirer firms. By examining the effect of Vietnam’s specific institutional aspects on cumulative abnormal return (CAR), I find that state-ownedenterprise (SOE) targets have higher CARs over non-SOE targets but not statistically significant; M&A deals in financials and materials industries show significant positive returns than the others do; domestic M&A brings higher returns to targets than inbound M&A activities and there is no statistical difference of M&A performance regarding the listing location. The results also indicate a significantly positive abnormal return from M&A activities for target firms, evidencing that M&A activities create value to shareholders of the targets.

Date: 2017-03-27
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Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:ctdzn

DOI: 10.31219/osf.io/ctdzn

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