The Effect of Excess Cash on M&A Decisions With Tunneling As Moderating Variable
Amount: The Effect of Excess Cash on M&A Decisions With Tunneling As Moderating Variable
Author: Valiant Mahdi Shihaby Nur Hasyim
Item Type: Thesis
Memberships: Master of Management Science Study Program, Faculty of Economics and Business, Airlangga University, Surabaya, Indonesia
Publisher: Airlangga University
Abstract
This study aims to examine the effect of excess cash moderated by tunneling on M&A decisions for the period January 1, 2000 to December 31, 2017. There are 120 transactions involving 75 sample companies in this study, from 120 samples there are 76 M&A transactions that have been completed and 44 have been completed. canceled M&A transactions. The independent variable in this study is excess cash. The moderating variable in this study is tunneling. The control variables in this study are ROA, last year's stock return, size, and CEO's shareholding. This study uses the probit regression method using (α = 10%). The results of the Wald test show that excess cash has a positive effect on a company's decision to conduct M&A. Tunneling strengthens the positive effect of excess cash on M&A decisions.
Keywords: M&A Decision, Excess Cash, Tunneling
