Title: CEO Tenure, Short-Term Merger and Acquisition Bidder 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 aim of this research is to examine the effect of CEO tenure on merger and acquisition bidder performance in the short term with the moderating variable target company characteristics in non-financial companies that carried out mergers and acquisitions in the period 2002 to 2019 and were listed on the Indonesia Stock Exchange (BEI). This research uses a multiple linear regression model. Research variable data was obtained from the company's annual report, Thomson Reuters database, and Yahoo Finance. The sample used in this research was 105 companies that carried out mergers and acquisitions with a total of 133 observations. The dependent variable in this research is the short-term performance of mergers and acquisitions of bidders as measured by the Cumulative Abnormal Return (CAR). The independent variable used in this research is CEO tenure. The moderating variables in this research are the characteristics of the target company which consist of private status target, same industry target, and domestic market target, and are controlled by the variables CEO age and company size. The research results show that CEO tenure has a positive effect on the short-term performance of mergers and acquisitions of bidders. Private status target, same industry target, and domestic market target strengthen the positive influence of CEO tenure on the short-term performance of mergers and acquisitions of bidders.
Keywords: Short-term Bidder Merger and Acquisition Performance, CEO Tenure, Private Status Target, Same Industry Target
