Journal Articles

Permanent URI for this collectionhttps://mro.massey.ac.nz/handle/10179/7915

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Now showing 1 - 5 of 5
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    Drivers of Merger and Acquisition Activities in Vietnam: Insights from Targets’ Perspectives and Deal Characteristics
    (MDPI, 2025-03) Bui K; Le T; Ngo T
    This study empirically examines the determinants of merger and acquisition (M&A) activities in Vietnam from 2005 to 2020, which has not been examined before, using a fixed-effects model for a sample of 674 completed M&A deals. The results indicate that targets’ corporate governance and deal characteristics have mixed effects on M&A decisions. More specifically, the independent member of the board and CEO duality of the target is negatively associated with most M&A types, except for cross-border mergers. However, the impact of targets’ blockholders is consistently positive regardless of M&A types. When observing the deal characteristics, mixed evidence is also found in the case of M&A payment form, industry-relatedness between the bidder and the target, the bidder’s stake in the target, and foreign ownership in the bidder’s stake. More interesting, our study emphasizes that voluntary agreement is seemingly critical to M&A decisions regardless of different types. Our results suggest several important implications, including balancing independent directors on the board, accounting for CEOs’ and other blockholders’ interests and influence, considering the types of M&A payments, and involving foreign investors in M&A activities. By understanding these implications, firms can better navigate the complexities of M&A transactions, enhancing their decision-making processes and ultimately contributing to improved shareholder value.
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    The COVID-19 outbreak and corporate cash-holding levels: Evidence from China
    (Frontiers Media S.A., 2022-10-17) Zhou D; Zhou H; Bai M; Qin Y; Husin MM
    By employing data from Shanghai and Shenzhen A-share markets for the period of 2019-2020, this paper examines the relationship between the degree of the COVID-19 pandemic's impact on firms' cash-holdings levels in China. We find that firms that are severely affected by the COVID-19 pandemic have higher current cash holdings levels, suggesting that the more positive (negative) the management tone in responding to the COVID-19 pandemic impact, the lower (higher) the firm's current cash holdings. However, future corporate cash holdings decrease considerably irrespective of the corporate sentiment towards COVID-19. The positive sentiment of each firm's management team towards the supply chain and the government policies results in a relative reduction of current cash holdings, whereas the severe impact on operating performance, especially the impact of the outbreak on the supply chain, demand, production and operations, and government policies, reduces the firm' s future cash holdings. In addition, the impact of the pandemic has increased the current cash holdings of state-owned enterprises and reduced the future cash holdings of non-state-owned enterprises. Meanwhile, companies located in a city with a higher density of population or companies that experience relatively higher competition in the industry tend to undergo a severer impact on their current and future cash holdings due to the COVID-19 pandemic. Overall, this study sheds the light on stimulating the vitality of enterprise investment and promoting the domestic economic cycle.
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    Recognizing CEOs and Chairmen’s personality and bank performance: new insights from signature analysis
    (Taylor and Francis Group on behalf of the Chinese Economic Association – UK, 2024-03-30) Le TDQ; Ho TH; Ngo T; Luu TB
    This study first uses graphology to examine the signatures of the CEOs and Chairmen of 26 commercial banks in Vietnam (2007-2020) to predict their personalities following the Big Five Personality model. Such personalities are used as a key explanatory variable to explain bank performance. Our findings extend the entrenchment theory that bank profitability is positively affected by the same personality traits of separate CEOs and Chairmen. More specifically, the findings indicate a positive relationship between bank profitability and conscientious and extraverted CEOs and Chairmen. When observing bank ownership, these two categories of personality traits are more critical to listed banks. As the first attempt to investigate whether separate CEO and chairman with the same characteristics may affect bank performance, our study will add more evidence to the existing literature about the relationship between corporate governance and bank profitability.
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    Real earnings management: A review of the international literature
    (John Wiley and Sons Australia, Ltd on behalf of Accounting and Finance Association of Australia and New Zealand., 2022-12) Habib A; Ranasinghi D; Wu JY; Biswas PK; Ahmad F; Dai L
    We provide a systematic literature review of the determinants and consequences of real earnings management (REM) in an international context. We provide a theoretical framework for REM, the development of REM measures, and review the determinants of REM, categorising these into financial reporting, auditing, governance and controls, capital market incentives, and regulatory determinants. We then review the empirical literature on the consequences of REM. We provide some suggestions for future research on measurement issues related to REM, and on filling gaps in the empirical research investigating its determinants and consequences.
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    Board Gender Diversity and Its Risk Monitoring Role: Is It Significant
    (Asian Academy of Management (AAM) and Penerbit Universiti Sains Malaysia, 15/08/2018) Lee-Hwei Khaw K; Liao J
    In recent years, there is an urgent call to strengthen board composition to safeguard against expropriation of shareholders’ interest and to reinforce public confidence, specifically in a weaker governance setting. Board gender diversity receives considerable attention within the issues of corporate governance. This is because female directors are found to be more active in monitoring activities, cautious in decision making, less aggressive and risk averse as compared to male directors. We support this argument with evidence from a sample of listed firms in Malaysia. In line with the literature, we show that female directors play a significant monitoring role in reducing corporate risk taking behaviour. Our results are robust to endogeneity concern. Since board gender diversity plays a significant risk monitoring role, we recommend that there should be a continuous call to appoint female directors to the boardrooms among Malaysian listed firms to diversify the ‘old boys club’ corporate boardrooms.