Title: CEO Tenure, Short-Term Bidder Merger and Acquisition Performance, and the Moderating Effect of Target Firm Characteristics
Author: Shindy Dwita Nuansari
Item Type : Thesis (Thesis)
Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
The purpose of this study is to examine the effect of CEO tenure on the performance of bidder mergers and acquisitions in the short term with the moderating variable of target company characteristics in non-financial companies that conducted mergers and acquisitions in the period 2002 to 2019 and listed on the Indonesia Stock Exchange (IDX). This study uses a multiple linear regression model. Data for research variables were obtained from company annual reports, Thomson Reuters database, and Yahoo Finance. The sample used in this study was 105 companies that conducted mergers and acquisitions with a total of 133 observations. The dependent variable in this study is the performance of bidder mergers and acquisitions in the short term as measured by Cumulative Abnormal Return (CAR). The independent variable used in this study is CEO tenure. The moderating variables in this study are the characteristics of the target company consisting of private status target, same industry target, and domestic market target, and are controlled by the variables of CEO age and company size. The results show that CEO tenure has a positive effect on the performance of bidder mergers and acquisitions in the short term. Private status target, same industry target, and domestic market target strengthen the positive effect of CEO tenure on the performance of bidder mergers and acquisitions in the short term.
Keywords: Short-term Bidder Merger and Acquisition Performance, CEO Tenure, Private Status Target, Same Industry Target