Government Ownership and Managers’ Role: Effect to Acquisition Return Among High-Technology Companies
This study investigates the effect of high-technology (high-tech) company acquisitions and GLIC ownership on shareholders’ value creation. Study samples for empirical analyses were carried out using the market-model event-study and multivariate analysis on studies published between 2011 and 2018. Th...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English English |
| Published: |
Penerbit USM
2023
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| Subjects: | |
| Online Access: | https://eprints.ums.edu.my/id/eprint/38436/1/ABSTRACT.pdf https://eprints.ums.edu.my/id/eprint/38436/2/FULL%20TEXT.pdf |
| Summary: | This study investigates the effect of high-technology (high-tech) company acquisitions and GLIC ownership on shareholders’ value creation. Study samples for empirical analyses were carried out using the market-model event-study and multivariate analysis on studies published between 2011 and 2018. The findings indicate that; (i) The CAR for high-tech acquiring firms for the three-day event window (–1,1), five-day event window (–2, +2) and 11-day event window led to significant positive returns, with at least at 10% level, signifying that investors have a favorable reaction towards short-term high tech acquisitions; (ii) The relationship between the GLICs’ Institutional Block holders (BPSVGLIC) and executive director (FRACEXEC) was found to affect the abnormal returns significantly negatively at a minimum 5% significance level. These results provide two practical implications; firstly, investors gain abnormal returns from their investment in high-tech acquiring companies, and secondly, firms with greater ownership stakes in GLICs could experience value destruction. |
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