Nurhazrina Mat Rahim and Wee Ching Pok
The purpose of this paper is to analyse the short-term wealth effects of mergers and acquisitions (M & As) in Malaysia. In addition, this study also examines the factors…
Abstract
Purpose
The purpose of this paper is to analyse the short-term wealth effects of mergers and acquisitions (M & As) in Malaysia. In addition, this study also examines the factors that affect the short-term shareholders’ wealth during M & A announcements in Malaysia.
Design/methodology/approach
The short-term wealth effect is measured by the Cumulative Average Abnormal Returns (CAARs). For the purpose of this study, the wealth effects of a sample of 180 target and 196 bidding companies announced in Malaysia during the period from 2001 to 2009 are analyzed.
Findings
Results of the study revealed that there are positive market reactions by both target and bidding shareholders towards M & A announcements. However, target shareholders earned significantly higher CAARs than bidding shareholders. There is sufficient evidence to suggest that economic condition surrounding merger announcements, type of acquisition (diversified/related), premium paid and status of bid (successful/failed) affect the short-term wealth effects of target and bidding shareholders during M & A announcements. However, the impact on the target and bidding shareholders are different. Relative size negatively affects bidding shareholders’ wealth. Target with higher ROE also earned significantly higher returns.
Originality/value
There is high number of announced M & A deals in Malaysia, little is known about the determinants of short-term wealth effects of M & As in emerging market Malaysia, in particular the third M & A wave.
Details
Keywords
Maha Shehadeh, H.M. Dawood and Khaled Hussainey
This study aims to examine the relationships between various components of digital financial literacy, namely, awareness, subjective knowledge, experience, the digital legal…
Abstract
Purpose
This study aims to examine the relationships between various components of digital financial literacy, namely, awareness, subjective knowledge, experience, the digital legal framework and skills, and their influence on the adoption of cashless payment systems among university affiliates in Jordan. It also explores the mediating role of gender in this relationship. The study integrates the Theory of Planned Behavior (TPB) and social role theory (SRT).
Design/methodology/approach
This study uses a cross-sectional survey across 34 Jordanian universities. Data from 418 participants were analyzed, focusing on factor analysis to assess the constructs' reliability and validity and to explore the moderating effects.
Findings
The findings illuminate that digital financial awareness, experience and skills are significant catalysts for using cashless payments among the targeted demographic. In contrast, the digital legal framework and subjective financial knowledge did not significantly influence cashless payment use. Additionally, gender differences emerged, highlighting a stronger association between digital financial experience and cashless payment usage for women.
Originality/value
The study's uniqueness stems from its detailed analysis of digital financial literacy's effect on cashless payment adoption in Jordan's academia, incorporating aspects like legal frameworks, awareness, and skills. It innovatively considers gender's moderating role, adding fresh insights into digital finance practices. Using the TPB and SRT, the research connects theory with Jordan's empirical data, suggesting strategies for education and policy. This work advances understanding of digital financial literacy in fostering a more inclusive digital financial system, contributing significantly to digital finance and behavioral economics literature.