| dc.description.abstract | Although there are many research in the same topic in foreign markets, there still have a literature gap in Vietnam market. Moreover, foreign investment wave into mergers and acquisitions is more and more important to Vietnam economy. Thus, this creates a need of this study in Vietnam market to fill in this gap. This research aims to clarify the short-term effect of cross-border mergers and acquisitions on Vietnamese target firm’s performance. The approach is using market base, which use daily stock price as benchmark to measure firm’s performance. Total 65 observations on 3 markets of Vietnam (HOSE, HNX and UPCOM) were examined by event study methodology with standardized residual test of significance. Event window is constructed for 31 days, including 15 days before and after announcement date and the day announcement was public. This research found a positive standardized abnormal return with significance at 98% in -10 trading day, which is 10 trading days before cross-border mergers and acquisitions announcement. Moreover, a negative standardized abnormal return with significance at 99,7% was found in the 11st day after the announcement. For cumulative standardized abnormal return, there are significance in day -8, -7, -6 and from day 0 to day 3. This result shows positive reaction of target firms’ shareholders to cross-border mergers and acquisitions information, as well as a convincing evidence of leakage effect on Vietnam market, where insiders buy target firms’ stock to deploy advantage before information is public. In addition, shareholders of target firms will suffer a substantial loss if hold the target firms’ stock after the announcement have published, due to actualization profit of shareholders who have reacted with cross-border M&A information before the announcement is made. | en_US |
