Does corporate liquidity affect the M&A decisions and methods of payment? Evidence in ASEAN listed firms

DOI

10.2991/aprish-18.2019.39How to use a DOI?

Keywords

M&As, method of payment, liquidity, financing, capital structure

Abstract

Using a probit model and data of 743 merger and acquisition deals of ASEAN listed firms over the period 2007 to 2017; this research studies the extent that liquidity impacts firms' cash capacity in corporate investing decisions. We examine whether high liquidity firms decide to join a merger and acquisition's bidding process and whether it affects their choice of payment method. We observe that high liquidity firms have managed their excess cash well through investments, and the probability of being M&A bidders is high. We found that high growth firms are likely to use cash payments in acquisitions. This more strongly affects financially constrained bidders, who face greater opportunity costs in holding cash

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Vania Tanudjaja
AU  - Eka Pria Anas
PY  - 2019/10
DA  - 2019/10
TI  - Does corporate liquidity affect the M&A decisions and methods of payment? Evidence in ASEAN listed firms
BT  - Proceedings of the 3rd Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2018)
PB  - Atlantis Press
SP  - 301
EP  - 308
SN  - 2352-5398
UR  - https://doi.org/10.2991/aprish-18.2019.39
DO  - 10.2991/aprish-18.2019.39
ID  - Tanudjaja2019/10
ER  -