The impact of market cycle on the performance of Singapore acquirers

• 成果类型: Article
• 署名作者: Pangarkar, N; Lie, JR
• 署名单位: National University of Singapore; National University of Singapore
• 刊物名称: STRATEGIC MANAGEMENT JOURNAL
• ISSN/ISSBN: 0143-2095
• DOI: 10.1002/smj.434
• 发表日期: 2004
• 页码: 1209-1216
• 关键词: acquirer performance; market cycle; related acquisitions; hubris

摘要

In this paper, we hypothesize that acquisitions undertaken during low market cycles will exhibit better performance than other acquisitions for two key reasons: lower likelihood of overpayment due to hubris and ease in implementing restructuring initiatives such as retrenchment. We define performance as the cumulative abnormal returns surrounding the acquisition event and deploy a trend-based measure for market cycle. Based on an analysis of 115 acquisitions by Singapore firms between 1990 and 1999, we find strong support for the hypothesized relationship. Copyright (C) 2004 John Wiley Sons, Ltd.