Corporate Take-overs in Malaysia: Determinants of Post Acquisition Values of Acquiring Firms

Abstract

Abstract: This study investigates acquiring firms’ value before and after take-overs using Tobin's g measure. The effect on acquiring firms’ value of variables such as the identity of the dominant owner, characteristics of the acquired firms and transaction characteristics ‘were examined. The findings show that acquirers had higher g value relative to control ims prior 0 a take-over but it declined subsequently. Ownership variable. was found to have greater explanation for post take-over firm value than he target firm characteristics and transaction characteristics. The findings also show that acquiring firms which are family owned create more value than firms with othe forms of ownership siete, implying that there is less agency problem in the former.