Title: The Effect of Excess Cash on M&A Decisions with Tunneling as a Moderating Variable
Author: Valiant Mahdi Syihaby Nur Hasyim
Item Type : Thesis (Thesis)
Affiliations: Master of Management Science Study Program, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
This study aims to examine the effect of excess cash moderated by tunneling on M&A decisions from January 1, 2000, to December 31, 2017. There are 120 transactions involving 75 sample acquirer companies in this study, of which 76 M&A transactions have been completed and 44 M&A transactions have been canceled. 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 shareholding. This study uses a probit regression method with (α = 10%). The results of the Wald test indicate that excess cash has a positive effect on a company's decision to conduct M&A. Tunneling strengthens the positive influence of excess cash on M&A decisions.
Keywords: M&A Decision, Excess Cash, Tunneling