Firm's performance reacts to the announcement of merger and acquisition evidence from Vietnam
Abstract
This research discussed on the influence of the M&A announcements of 33 Vietnam corporations functioned in different industries. Those are listed in firms on the “Ho Chi Minh Stocks Exchange” (“HOSE”) and “Ha Noi Stocks Exchange” (“HNX”) from different time from 2006 to 2019. The research using the method of Event Study in order to examine the influence of the M&A deals on the securities price in five days pre and post of the announcement. Besides, the reaction of securities prices to the M&A news is also decided. Study findings show that the share prices both increase and decrease right after the M&A announcements declared by both sides. Abnormal return (AR) is statistically significantly shown. The final result implicated on the theory of dividend communication because of the dividend declarations influence on price. The findings make sure the M&A announcement create a little influence on stock prices at a specified day.