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