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...
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| Format: | Article |
| Language: | English English |
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Penerbit USM
2023
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| 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 |
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| author | Norhamiza Ishak Hanita Kadir Shahar Kamarun Nisham Taufil Mohd |
| author_facet | Norhamiza Ishak Hanita Kadir Shahar Kamarun Nisham Taufil Mohd |
| author_sort | Norhamiza Ishak |
| collection | UMS |
| description | 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. |
| first_indexed | 2024-03-06T03:28:17Z |
| format | Article |
| id | ums.eprints-38436 |
| institution | Universiti Malaysia Sabah |
| language | English English |
| last_indexed | 2024-03-06T03:28:17Z |
| publishDate | 2023 |
| publisher | Penerbit USM |
| record_format | dspace |
| spelling | ums.eprints-384362024-03-05T02:33:33Z https://eprints.ums.edu.my/id/eprint/38436/ Government Ownership and Managers’ Role: Effect to Acquisition Return Among High-Technology Companies Norhamiza Ishak Hanita Kadir Shahar Kamarun Nisham Taufil Mohd HB1-3840 Economic theory. Demography HG4530 Investment companies. Investment trusts. Mutual funds 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. Penerbit USM 2023 Article NonPeerReviewed text en https://eprints.ums.edu.my/id/eprint/38436/1/ABSTRACT.pdf text en https://eprints.ums.edu.my/id/eprint/38436/2/FULL%20TEXT.pdf Norhamiza Ishak and Hanita Kadir Shahar and Kamarun Nisham Taufil Mohd (2023) Government Ownership and Managers’ Role: Effect to Acquisition Return Among High-Technology Companies. Asian Academy of Management Journal of Accounting and Finance, 19 (2). pp. 293-315. ISSN 1985-8299 https://doi.org/10.21315/aamjaf2023.19.2.10 |
| spellingShingle | HB1-3840 Economic theory. Demography HG4530 Investment companies. Investment trusts. Mutual funds Norhamiza Ishak Hanita Kadir Shahar Kamarun Nisham Taufil Mohd Government Ownership and Managers’ Role: Effect to Acquisition Return Among High-Technology Companies |
| title | Government Ownership and Managers’ Role: Effect to Acquisition Return Among High-Technology Companies |
| title_full | Government Ownership and Managers’ Role: Effect to Acquisition Return Among High-Technology Companies |
| title_fullStr | Government Ownership and Managers’ Role: Effect to Acquisition Return Among High-Technology Companies |
| title_full_unstemmed | Government Ownership and Managers’ Role: Effect to Acquisition Return Among High-Technology Companies |
| title_short | Government Ownership and Managers’ Role: Effect to Acquisition Return Among High-Technology Companies |
| title_sort | government ownership and managers role effect to acquisition return among high technology companies |
| topic | HB1-3840 Economic theory. Demography HG4530 Investment companies. Investment trusts. Mutual funds |
| url | https://eprints.ums.edu.my/id/eprint/38436/1/ABSTRACT.pdf https://eprints.ums.edu.my/id/eprint/38436/2/FULL%20TEXT.pdf |
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