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 for the period 1 January 2000 to 31 December 2017. There were 120 transactions involving 75 acquiror sample companies in this study, of the 120 samples there were 76 M&A transactions that had been completed and 44 canceled M&A transactions. The independent variable in this research is excess cash. The moderating variable in this research is tunneling. The control variables in this research are ROA, last year's stock return, size, and CEO shareholding. This research uses a probit regression method using (α = 10%). The Wald test results show 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
