CEO Tenure, Performance of Short-Term Bidder Mergers and Acquisitions, and Moderating Effects of Target Company Characteristics
Amount: CEO Tenure, Performance of Short-Term Bidder Mergers and Acquisitions, and Moderating Effects of Target Company Characteristics
Author: Shindy Dwita Nuansari
Item Type: Thesis
Memberships: Master of Management Science Study Program, Faculty of Economics and Business, Airlangga University, Surabaya, Indonesia
Publisher: Airlangga University
Abstract
The purpose of this study was to examine the effect of CEO tenure on the performance of mergers and acquisitions bidders in the short term by moderating the characteristics of target companies in non-financial companies that carried out mergers and acquisitions in the period 2002 to 2019 and were listed on the Indonesia Stock Exchange (IDX). This research uses multiple linear regression model. Research variable data obtained from the company's annual report, thomson reuters database, and yahoo finance. The sample used in this study were 105 companies that carried out mergers and acquisitions with a total of 133 observations. The dependent variable in this study is the performance of short-term bidder mergers and acquisitions as measured by Cummulative Abnormal Return (CAR). The independent variable used in this study is CEO tenure. The moderating variable in this study is the characteristics of the target company, which consists of private status target, same industry target, and domestic market target, and is controlled by the CEO age and company size variables. The results show that CEO tenure has a positive effect on the performance of short-term bidder mergers and acquisitions. Private status target, same industry target, and domestic market target strengthen the positive influence of CEO tenure on the performance of short-term bidder mergers and acquisitions.
Keywords: Short-term Bidder Merger and Acquisition Performance, CEO Tenure, Private Status Target, Same Industry Target
