Full metadata record
| DC Field | Value | Language |
|---|---|---|
| dc.contributor | Faculty of Business | en_US |
| dc.contributor.advisor | Mian, Mujtaba (MM) | - |
| dc.creator | Po, Chun Wong Danny | - |
| dc.identifier.uri | https://theses.lib.polyu.edu.hk/handle/200/7987 | - |
| dc.language | English | en_US |
| dc.publisher | Hong Kong Polytechnic University | - |
| dc.rights | All rights reserved | en_US |
| dc.title | An empirical study of the relationship between managerial ability and the success of strategic acquisitions | en_US |
| dcterms.abstract | This thesis examines managerial ability as a determinant of the success or failure of strategic mergers and acquisitions. I employ the managerial ability score developed by Demerjian, P., Lev, B. and McVay, S. (2012) as a proxy for managerial ability. The success or failure of acquirers is measured by (a) the change in the industry-adjusted returns on assets (ROA) in the post-merger period relative to the pre-merger period, and (b) the short- and long-run abnormal stock returns following the transaction.Based on a sample of 1,957 transactions between the years of 1992 and 2011 obtained by merging the Thomas ONE Banker database and the managerial ability score data available from Demerjian et al. (2012), I document statistically significant and economically meaningful positive correlations between the pre-merger managerial ability of acquirers and the combined improvement of firms in their post-merger operating performance. On the other hand, there is no evidence that the three-day stock price reaction to the merger announcement varies systematically with the managerial ability. However, there is a statistically significant and economically meaningful positive correlation between the pre-merger managerial ability of acquirers and the combined firms{174} long-run abnormal stock returns. The empirical results show that improvement in post-merger operating performance translate into stock gains in the long run, which can be predicted by the higher managerial ability of the acquiring firms, but it is not recognised by the stock market immediately upon announcement.This empirical study is the first of its kind to show that managerial ability is a potential determinant of strategic merger and acquisition performance. Furthermore, I demonstrate that the Managerial Ability Score developed by Demerjian et al. (2012) is an efficient and robust proxy for managerial ability in empirical studies on merger and acquisition performance. Managerial ability helps the governing boards of acquiring firms determine the readiness of their management to attempt strategic acquisitions. It also enables the managers of acquiring firms to select acquisition targets and articulate appropriate integration strategies with reference to the relative managerial ability of the two firms. Similarly, the empirical results provided useful information for stock market investors anticipating long-run abnormal stock returns of merger and acquisition transactions. | en_US |
| dcterms.extent | vi, 108 leaves ; 30 cm | en_US |
| dcterms.isPartOf | PolyU Electronic Theses | en_US |
| dcterms.issued | 2014 | en_US |
| dcterms.educationalLevel | All Doctorate | en_US |
| dcterms.educationalLevel | D.B.A. | en_US |
| dcterms.LCSH | Consolidation and merger of corporations | en_US |
| dcterms.LCSH | Leadership | en_US |
| dcterms.LCSH | Executive ability | en_US |
| dcterms.LCSH | Hong Kong Polytechnic University -- Dissertations | en_US |
| dcterms.accessRights | restricted access | en_US |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| b28256657.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 2.06 MB | Adobe PDF | View/Open |
Copyright Undertaking
As a bona fide Library user, I declare that:
- I will abide by the rules and legal ordinances governing copyright regarding the use of the Database.
- I will use the Database for the purpose of my research or private study only and not for circulation or further reproduction or any other purpose.
- I agree to indemnify and hold the University harmless from and against any loss, damage, cost, liability or expenses arising from copyright infringement or unauthorized usage.
By downloading any item(s) listed above, you acknowledge that you have read and understood the copyright undertaking as stated above, and agree to be bound by all of its terms.
Please use this identifier to cite or link to this item:
https://theses.lib.polyu.edu.hk/handle/200/7987