Information environment and strategy of mergers and acquisitions: Evidence from Vietnamese companies’ deals

DOI

10.2991/978-94-6463-583-6_21How to use a DOI?

Keywords

internal information environment; M&A deals; asymmetric information

Abstract

The This study investigates the relationship between companies’ internal information environment and strategic decisions of acquirers. By using cross-sectional data from all mergers and acquisitions (M&A) deals completed in the period 2005–2020 of all target companies listed on Vietnam’s stock exchanges, the study confirms the quality of the target company’s internal information environment is proportional to the level of share ownership of the acquirer. Besides, the results finds that transnational acquirers are more likely to make acquisitions of target companies with a transparent internal information environment. This finding suggests the acquirers to be especially careful when considering the issue of information transparency in target companies in Vietnam, in which, stock liquidity and earnings management are two of many criteria to measure a company’s information environment and should be used in decision making.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Nguyen Thi Hong Nham
AU  - Vu Thang Thinh
AU  - Duong Nu Quy Dan
PY  - 2024
DA  - 2024/11/26
TI  - Information environment and strategy of mergers and acquisitions: Evidence from Vietnamese companies’ deals
BT  - Proceedings of the 2nd International Conference - Resilience by Technology and Design (RTD 2024)
PB  - Atlantis Press
SP  - 403
EP  - 423
SN  - 1951-6851
UR  - https://doi.org/10.2991/978-94-6463-583-6_21
DO  - 10.2991/978-94-6463-583-6_21
ID  - Nham2024
ER  -