Proceedings of the 4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021, 27-28 July 2021, Semarang, Indonesia

Research Article

Institutional Shareholders’ Role Analysis on Cross-Border M&A Deals in Asia Pacific Region

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  • @INPROCEEDINGS{10.4108/eai.27-7-2021.2316902,
        author={Rifda Mufidah Lestari and Zaafri Ananto Husodo},
        title={Institutional Shareholders’ Role Analysis on Cross-Border M\&A Deals in Asia Pacific Region},
        proceedings={Proceedings of the 4th International Conference on Economics, Business and Economic Education Science, ICE-BEES 2021, 27-28 July 2021, Semarang, Indonesia},
        publisher={EAI},
        proceedings_a={ICE-BEES},
        year={2022},
        month={3},
        keywords={asia pacific asymmetric information cross-border institutional shareholders merger and acquisition},
        doi={10.4108/eai.27-7-2021.2316902}
    }
    
  • Rifda Mufidah Lestari
    Zaafri Ananto Husodo
    Year: 2022
    Institutional Shareholders’ Role Analysis on Cross-Border M&A Deals in Asia Pacific Region
    ICE-BEES
    EAI
    DOI: 10.4108/eai.27-7-2021.2316902
Rifda Mufidah Lestari1,*, Zaafri Ananto Husodo1
  • 1: Universitas Indonesia
*Contact email: rifdamufidah@gmail.com

Abstract

In this competitive era, one of the key success factors for M&A deals is the role of institutional shareholders. However, each institutional shareholder has different knowledge of information. This research describes the effect of institutional shareholders on cross-border merger and acquisition deals conducted by Asia Pacific acquirers by running panel data analysis of M&A data from 2015 - 2019. The results suggest that the cross-border M&A deals are likely to increase by existence of institutional shareholders. Specifically, presence of foreign institutional shareholders, independent institutional shareholders, and long-term institutional shareholders encourages company to have cross-border M&A deals. Overall, these results are in line with the view that institutional shareholders can offer better M&A deals in Asia Pacific. Acquirer firms must be able to build good relationships with institutional shareholders and manage information from them so the company’s decision-making process can be profitable for all party.