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7/30/2019 IMPACT OF ACQUISTION ANNOUNCEMANTS ON STOCK RETURN OF MALAYSIAN COMPANY
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762
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
IMPACT OF ACQUISTION ANNOUNCEMANTS ON STOCK RETURN OF MALAYSIANCOMPANY
Seyed Hamidreza Sakaki
Faculty of Management
Multimedia University
Zarehan Selamat
Faculty of Management
Multimedia University
ABSTRACT
The study is to undertake the analysis of impact of acquisition on the stock return of acquirer companies
in Malaysia. The period of study is from year 2005 to 2007 and the samples of companies used are the 49
companies listed on the main board of Bursa Malaysia. This study considered the acquisition
announcement date as day 0 and analyzed the impact of acquisition announcement on the stock return
of acquirer company 20 days before and after acquisition announcement date. For this purpose, two
models were used which are market model and market adjusted model. By applying these two models,
the excess return that was created by the acquisition announcement was calculated. The study found
acquisition didnt bring a positive return for the shareholders of the acquirer firm.
KEY WORDS:acquisition announcement, acquirer, cumulative abnormal return, Malaysia
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1. Introduction
Evidence shows that it is challenging for merger and acquisition strategies to create value. In regards tostock return, in an efficient capital market, stock price will react to merger or acquisition
announcements. If the market is sure about the success of the merger or acquisition, we can expect an
increase in the stock price of both acquirer and target company and value creation for shareholders; if
the market is hesitant about the success of the merger or acquisition, stock price of both companies will
experience decline and create negative returns for shareholders (Gunasekaran and Selvam 2011).
Among several researches that studied the different aspects of merger and acquisition, the main
numbers of these studies had sharply focused only on the investigation of financial performance of
acquirer and target companies in the pre and post merger or acquisition period. Somehow, it is hard to
find published papers in Malaysia on how the acquirer companies are performing after acquisition. To
fulfill this gap, the current research has attempted to analyze the stock return of acquirer companies
before and after acquisition in Malaysia.
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3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
2. Literature Review
Aristeidis, G. Samitas and Dimitris. F. Kenourgios (2007) investigated the impact of merger and
acquisition announcement on stock returns of tramp shipping firms, and how this affected their stock
values. For this purpose, they used the event study methodology and bootstrap. They indicated that
during the merger announcement, the tramp firms stock experienced a positive return.
Gunasekaran and Selvam (2011) studied the reaction of stock price of both target and acquirer company
to merger announcement by using market model method and market adjusted returns model. They
found that among thirteen mergers, there were two mergers wherethe acquirer experienced negative
abnormal returns and target companies received positive abnormal return; three mergers in which the
acquirer companies had positive abnormal returns and target companies received negative abnormalreturns; among the remaining companies, seven mergers experienced positive abnormal return not only
for the acquirer company but also for the target company and finally, for one merger, both target and
acquirer company showed negative abnormal return.
Shukla and Gekara (2010) examined the effect of merger on financial performance of acquiring firm
during pre and post merger period by using financial ratios. In addition, they analyzed the share price
behavior 20 days after and before merger announcement by using the market model and market
adjusted return model. The result indicated that stockholders experienced loss around the
announcement period. Al-Sharkas and Hassan (2010) examined the abnormal returns for bidder, target
and combined firms by applying the modified market model and EGARCH. They found that the outcome
of both methods revealed that investors of the Target Company gained significantly positive return,
meanwhile the shareholders of the acquirer company experienced significant negative return. To put in
a nutshell, the merger announcement of the bank led to create a positive return for the combined
investors.
Campa and Hernando (2004) investigated the impact of merger announcement on stock return during
1998-2000 by using Cumulative abnormal returns to target firms and Cumulative abnormal returns to
buyer firms and also returns to buyer and target firms combined around the announcement date. They
found that the shareholders of the target Company experienced a positive cumulative abnormal return
significantly that came from the merger announcement. On the other hand, the average cumulative
abnormal return to stockholders of the acquiring firm didnt differ from zero. Actually, in approximately
55% of the mergers, returns which were created for investors were negative.
The paper conducted by Mishra and Goel (2005) tested two hypotheses which were: Whether positive
or negative cumulative excess returns accrued to RIL (bidder) or RPL (target) shareholders and the
reasons thereof and Whether there is zero or negative combined excess return in the merged firm (RIL-
RPL combined) and the reasons thereof. They found that the shareholders of target company enjoy
positive excess return and the shareholders of acquirer company experienced negative return.
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3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
Manoj and Jagandeep (2008) explored the impact of merger announcement on stock returns for
shareholders in the private banking sector by using event study methodology which included the single
factor model and the two factor model. They analyzed five mergers during 1999-2005. They showed that
merger announcement in Indian private banking sector had positive effects for both target and acquirer.
The paper written by Mangold and Lippok (2008) studied the effect of cross-border merger and
acquisition on shareholders wealth during 2000-2007 and whether this value is different from the value
that was created by a domestic merger and acquisition. For this purpose, the researchers used the event
study methodology. They found that the share return increased for the shareholders of the target
company meanwhile the results showed negative or zero abnormal returns or slightly positive return. In
addition, they found that the abnormal return is negative for cross-border deals while it's positive for
domestic transactions.
3. Methodology
With regards to stock return of company, there are many methods to measure the value created by
acquisition. In this study, the market model and market adjusted model will be used to evaluate the
immediate impact of acquisition on the share price of company because in an efficient capital market,
the share price of companies immediately react to new announcement and information. In order to
measure the impact of the acquisition on the share price of the company, the excess return has to be
calculated. Thus, for this purpose, the study considered the abnormal return of company instead ofactual return over the study period. The event day for each firm was considered as the date of stock
exchange announcement. For analyzing the immediate impact, 20 day before and after acquisition
announcement was considered. Therefore, the event day is 0 day; the days before acquisition are
considered as negative days and the days after acquisition are considered as positive days. Within this
study period, all the effects on the share price of the company were able to be captured. Although, the
longer period will capture all the immediate impact on the share price of the firm but there will be more
noise in the data.
As explained before, the abnormal return of each firm is calculated before and after acquisition based
on the market model and market adjusted model. After computations, the cumulative abnormal return(CAR) should be calculated. The CAR is the aggregate abnormal return from day -20 to day +20. The CAR
indicates the average total impact of the event across all firms or across event days.
3.1. Market model method
Based on the market model method, the expected rate of return can be calculated from the equation
below:
ARt = + .Rmt + E
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3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
Where Rmt is the actual return on Kuala Lumpur stock market index (KLSE) for day t,, the mean returns
over the period was not explained by the market and measures sensitivity of the firm to the market.
Both and was extracted from Bloomberg information service for each company based on their event
window. This is a measure of risk and E is a statistical error term where in this study E = 0.
3.2. Market adjusted return method
Excess return for market adjusted method is calculated using the fallow equation:
ARt = Rt Rmt
ARt = abnormal return on the security for day t;Rt = Actual return on the security for day t; and
Rmt = Actual return on market index for day t
After calculating the excess return for before and after acquisition based on the market model method
and market adjusted return method, the cumulative abnormal return for Acquirer Company before and
after acquisition needs to be calculated as shown below:
CAR = ARt (t= -20 to +20)
The trend and conclusion about the stock return of the acquirer company will be compared and
observed.
3.3. Data and variables
The period of the study is from 1.1.2005 to 1.1.2008; it means that it will include all the acquisitions that
have happened in this period in Malaysia. The population of the study includes all the companies that
were acquired by other companies in Malaysia over the period of 2005 - 2008.All the data in this study
are secondary data. The data was extracted from Bloomberg information services and Share prices of
companies were extracted from the yahoo finance website.
For the sample selection, some points in this study were considered and they are as follows:
The stock price of acquirer company should be available Acquirer companies should be listed in KLSE Each company should have only one acquisition during the period due to avoid overlap
Therefore, based on the above information, there are 49 acquirer companies that have these
specifications and they constitute the sample in this study.The list of these companies is shown in Table
1.
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RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
4. Data analysis and results
For evaluating the effect of acquisition on the share price of company, the abnormal return of share
price needs to be calculated rather than the actual price; meaning the excess return that was created by
the acquisition announcement. For this purpose, the market model and market adjusted model was
employed. The study period for this part consists of acquisition announcement date as day zero and 20
days before acquisition and 20 days after acquisition. Thus, an event window of 41 days was used,
centered on the event day.
The analysis of share price study consisted of two parts:
(1) Abnormal returns of acquirer companies on the announcement day based on the market modeland market adjusted model.
(2) The CAR of acquirer companies before and after acquisition based on the market model andmarket adjusted model.
Table clearly indicates abnormal returns of acquirer companies on the announcement day based on the
market model and market adjusted model. In respect to the market model, 26 companies out of the 49
experienced negative abnormal return, while 23 companies received positive return on the same day.
On the other hand, under the market adjusted model, 23 companies earned negative abnormal return
and 26 of them gained positive return. The abnormal returns indicate that the return was the excess ofthe actual return and it was caused by the event day. The abnormal returns for before and after
acquisition were computed to obtain the cumulative average return. The analysis of this part is
presented as shown below:
(CAR) calculated under the market model and market adjusted model for Asian Pac Holdings Bhd is
presented in APPENDIX
Table 1: The list of all acquirer company
No Date of acquisition Acquirer
1 3/18/2005 Asian Pac Holdings Bhd
2 3/15/2005 Berjaya Assets BHD
3 3/1/2005 Degem Bhd
4 2/7/2005 Dolomite Corp Bhd
5 3/17/2005 Ecofirst Consolidated Bhd
6 1/10/2005 Eden Inc Bhd
7 1/12/2005 Genting Bhd
8 3/25/2005 Genting Malaysia BHD
9 1/12/2005 Khind Holdings Bhd
10 12/13/2005 Kulim Malaysia BHD
11 3/8/2005 Lii Hen Industries BHD
12 11/18/2005 MBM Resources BHD
13 2/15/2005 Pharmaniaga Bhd
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RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
14 11/25/2005 Scomi Marine Bhd
15 1/19/2005 Silver Bird Group Bhd
16 2/3/2005 Supermax Corp Bhd
17 2/22/2005 Symphony House Bhd
18 1/17/2005 TAN Chong Motor Holdings BHD
19 3/29/2005 Tradewinds Corp Bhd
20 12/1/2005 Wah Seong Corp Bhd
21 11/28/2006 Atlan Holdings Bhd
22 2/10/2006 Cymao Holdings Bhd
23 2/16/2006 Denko Industrial Corp Bhd
24 2/8/2006 DXN Holdings Bhd
25 12/22/2006 Eksons Corp BHD
26 3/3/2006 Furqan Business Organization BHD
27 3/3/2006 GSB Group Bhd28 12/18/2006 Integrated Logistics Bhd
29 1/31/2006 Mahajaya Bhd
30 11/7/2006 Mulpha International Bhd
31 12/1/2006 PMB Technology Bhd
32 2/28/2006 QL Resources BHD
33 2/16/2006 Ranhill Bhd
34 12/31/2006 Rex Industry Bhd
35 12/31/2006 SPK Sentosa Corp BHD
36 12/31/2006 Sumatec Resources Bhd
37 12/31/2006 TIGER SYNERGY BHD
38 1/9/2007 AirAsia BHD
39 3/13/2007 Amtel Holdings Bhd40 1/15/2007 Emas Kiara Industries Bhd
41 2/13/2007 Evergreen Fibreboard Bhd
42 3/13/2007 Fima Corp BHD
43 2/6/2007 Jaycorp Bhd
44 3/19/2007 Kuala Lumpur Kepong Bhd
45 1/31/2007 Pelikan International Corp Bhd
46 3/2/2007 Success Transformer Corp Bhd
47 3/16/2007 Top Glove Corp Bhd
48 1/17/2007 UMW Holdings Bhd
49 1/26/2007 YTL Corp Bhd
Table 2: Abnormal Returns of Acquirers on the announcement day based on the market model & market
adjusted model
No Date AcquirerMarket
model
Market Adjusted
Model
1 2004/03/19 Asian Pac Holdings Bhd -0.2953 -0.0033
2 2003/11/21 Berjaya Assets BHD -0.3101 -0.0167
3 2004/07/19 Degem Bhd -0.6652 -0.0006
4 2005/02/07 Dolomite Corp Bhd 0.0621 -0.0368
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3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
No Date AcquirerMarket
model
Market Adjusted
Model
5 2005/03/17 Ecofirst Consolidated Bhd -0.1058 -0.0019
6 2003/06/12 Eden Inc Bhd 2.1736 -0.0025
7 2004/09/23 Genting Bhd 0.0488 0.0099
8 2005/03/25 Genting Malaysia BHD 0.0031 -0.0064
9 2005/01/12 Khind Holdings Bhd 0.4474 0.0096
10 2005/10/07 Kulim Malaysia BHD -0.1058 -0.0023
11 2005/03/08 Lii Hen Industries BHD -2.8570 -0.0212
12 2005/09/29 MBM Resources BHD 0.0437 0.0003
13 2004/09/28 Pharmaniaga Bhd -0.0454 -0.0155
14 2005/08/16 Scomi Marine Bhd -1.7350 -0.0670
15 2005/01/19 Silver Bird Group Bhd -0.1202 0.0110
16 2005/02/03 Supermax Corp Bhd 0.1632 0.0049
17 2005/02/18 Symphony House Bhd -0.0764 0.0053
18 2005/01/17 TAN Chong Motor Holdings BHD 0.2499 -0.0027
19 2003/05/13 Tradewinds Corp Bhd 0.0174 0.0116
20 2005/10/28 Wah Seong Corp Bhd 0.0225 0.0090
21 2006/11/28 Atlan Holdings Bhd 0.0674 0.0104
22 2005/06/06 Cymao Holdings Bhd -0.1148 0.0298
23 2006/02/16 Denko Industrial Corp Bhd 1.0308 -0.0010
24 2006/02/08 DXN Holdings Bhd 0.0140 -0.0103
25 2006/05/23 Eksons Corp BHD 0.2633 0.0208
26 2006/03/03 Furqan Business Organization BHD -0.0882 0.0656
27 2006/03/03 GSB Group Bhd -0.5787 0.0031
28 2006/12/18 Integrated Logistics Bhd -0.0912 -0.0125
29 2005/10/19 Mahajaya Bhd -0.4148 0.0092
30 2006/08/18 Mulpha International Bhd 0.0009 0.0086
31 2006/12/01 PMB Technology Bhd 0.2766 0.0582
32 2005/09/07 QL Resources BHD 0.0076 -0.0082
33 2006/02/16 Ranhill Bhd 0.6645 -0.0142
34 2005/02/16 Rex Industry Bhd 0.0085 0.0174
35 2006/11/22 SPK Sentosa Corp BHD -0.4616 -0.0074
36 2004/07/01 Sumatec Resources Bhd -0.2731 0.0185
37 2006/12/19 TIGER SYNERGY BHD 0.0308 0.0021
38 2007/01/09 AirAsia BHD -0.1483 -0.0117
39 2007/03/13 Amtel Holdings Bhd -0.1742 -0.0173
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ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
No Date AcquirerMarket
model
Market Adjusted
Model
40 2007/01/15 Emas Kiara Industries Bhd -0.4445 -0.0072
41 2007/02/13 Evergreen Fibreboard Bhd -0.1906 0.0419
42 2006/09/20 Fima Corp BHD -0.1219 0.0033
43 2006/11/06 Jaycorp Bhd -0.0758 0.0182
44 2006/12/18 Kuala Lumpur Kepong Bhd 0.2754 -0.0005
45 2006/11/06 Pelikan International Corp Bhd -0.7344 0.0228
46 2006/05/10 Success Transformer Corp Bhd -0.2711 0.0546
47 2006/11/27 Top Glove Corp Bhd 0.5645 0.0005
48 2007/01/17 UMW Holdings Bhd 0.0095 0.0015
49 2007/01/26 YTL Corp Bhd -0.1579 -0.0055
Table . Based on the market model, the analysis of CAR indicates that there isnt any improvement and
positive return for the company after acquisition. In addition, the CAR analysis based on the market
adjusted model shows that the acquisition led to negative impact on stock return for the company after
the acquisition announcement day. More specifically, before acquisition the firm experienced positive
CAR except on day -20. On the other hand, after acquisition, CAR was negative for the first day but after
+1, it moved into the positive zone till +5. CAR was in the negative zone from +6 to +20. As a whole, the
results confirm that Asian Pac Holdings Bhd didnt experience any positive abnormal return, not only
based on the market model but also based on the market adjusted model after acquisition.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Berjaya Assets Bhd is presented in Table . Under the market model, after the
acquisition announcement, the firm didnt earn any positive CAR return. In the market adjusted model,
the CAR had an erratic behavior after the acquisition announcement and there isnt any positive overall
impact after the acquisition announcement. It could be concluded that, Berjaya Assets Bhd didnt
experience any positive CAR after the acquisition announcement.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Degem Bhd is presented in Table 5. With regards to the analysis of CAR
based on the market model, the whole study period indicated negative return only. It can be interpreted
that the acquisition wasnt welcomed by the shareholders of the firm. On the other hand, based on the
market adjusted model, the firm earned positive CAR only between +10 and +14. These outcomes imply
that the acquisition didnt create any positive impact on the share prices of the acquirer Company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Dolomite Corp Bhd is presented in Table . Based on the market model, the
analysis of CAR indicates that the firm experienced positive CAR both before and after acquisition. The
analysis of CAR under the market model clearly shows that the CAR of the firm dipped into the negative
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zone during day -20 to -14, after -14, the CAR of the firm moved to the positive zone during -13 to +12,
from +12 to +20, the CAR of the firm had erratic behavior. It can be concluded that the acquisition had a
positive impact on the share price of the company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Ecofirst Consolidated Bhd is presented in Table . In respect to the market
model, the CAR analysis manifested that the firm experienced negative CAR not only before acquisition
announcement but also after that. In contrast, it is found that in the market adjusted model, the firm
indicated a positive CAR during the study period excluding day -13 and -14. It means that the firm
earned positive CAR during the study period and the acquisition announcement had a positive impact on
the share price of the firm. The results show that these models imply a mixed impact of acquisition.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Eden Inc Bhd is presented in Table the results of CAR under both the market
model and the market adjusted model show that before and after acquisition, the firm recorded a
positive CAR. In other words, the results confirm that the acquisition announcement created a positive
impact on the share price of the Acquirer Company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Genting Bhd is presented in Table the examination of CAR under the market
model clearly indicates that the acquisition brought up a positive impact on the share price of the firm
during the study period. In addition, the results based on the market adjusted model indicated a positiveCAR for the study period excluding day -19 and -20. As a whole, it is understood that the firm provided
positive returns to its investors.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Genting Malaysia Bhd is presented in Table . In respect to the market model,
the results reveal that the firm earned a positive CAR for the -19 and -20 and also from -12 day to -6. The
CAR for other days is in the negative zone. With regards to the market adjusted model, only day -15 and
-19 show a positive return, the firm experienced negative CAR for other days. The above analysis
signifies that the acquisition announcement had a negative impact on the share price of the firm.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and themarket adjusted model for Khind Holdings is presented in Table . CAR that was calculated under the
market model recorded a positive return for the firm during the study period. With regard to the market
adjusted model, the CAR was negative only for day -19 and -14 and from day 4 to 6. For the remaining
period, the firm earned a positive return. In conclusion, this study confirms that acquisition has a
positive impact on the share price of the Acquirer Company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Kulim Malaysia Bhd is presented in Table . With reference to the analysis of
CAR under the market model, there was a negative return for the acquirer for the whole study period.
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Under the market adjusted model, the firm earned negative value except for day -2 to +1. As a whole,
the table depicts that the acquisition didnt provide any positive impacts on the wealth of the
shareholders of the Acquirer Company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Lii Hen Industries Bhd is presented in Table . The firm earned a negative
return under the market model for before and after acquisition period. Similarly, the firm, under the
market adjusted model, earned a negative return excluding day -16 and -17. In conclusion, the results
recorded negative returns before and after acquisition for the firm.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for MBM Resources Bhd is presented in Table . The calculation under the marketmodel confirms that the firm gained positive return during the study period. On the other hand, the
results based on the market adjusted model indicate that the firm gained negative return around the
acquisition announcement date from day -6 to +6 excluding day 1. Although the firm experienced a
negative return around its acquisition announcement day, it earned a positive return for the remaining
days of the study period. As a whole, it is inferred that the acquisition brought positive value for the
shareholders.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Pharmaniaga Bhd is presented in Table . It is to be noted that under the
market model, the acquisition had negative impact on the share price of the company. Likewise, underthe market adjusted model, the firm earned a negative return except for day -12, -13 and -9. Thus, this
study confirms that the acquirer company didnt earn a positive return for its shareholders and it failed
to benefit them.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Scomi Marine Bhd is presented in Table . With reference to the analysis of
CAR under the market model, there was a negative return for the firm during the study period and in the
market adjusted model, there was also a negative return with the exception of day -6 and -5. This means
that the shareholders didnt receive any positive abnormal returns before and after acquisition.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and themarket adjusted model for Silver Bird Group Bhd is presented in Table . Based on the market model, the
above analysis signifies that the firm earned negative CAR during the study period. In the market
adjusted model, the firm recorded negative return before and after acquisition excluding day -20, -16
and from day -13 to -6. It is significant that the acquisition didnt create a positive impact on the share
price of the company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Supermax Corp Bhd is presented in Table . The analysis of CAR under the
market model clearly shows that the acquisition brought a positive impact to the share price of the
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company. According to the market adjusted model, the firm earned negative value from day -20 to -12.
Later, it showed a positive impact between -11 to +20. It is concluded that the acquisition impacted the
share price of the firm positively.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Symphony House Bhd is presented in Table . The computation of CAR based
on the market model, manifests that the acquisition brought a negative return for the investors. In
contrast, in respect of the market adjusted model, CAR created a positive return excluding day +16 and
+20. Thus, these models imply a mixed impact of acquisition.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Tan Chong Motor Holdings Bhd is presented in Table . The results based onthe market model indicate that the acquisition brought a positive return for the share price of the
company. In addition, based on the market adjusted model, the firm earned positive CAR value from -19
to +20 except for day -17. In conclusion, this study confirms that the firm earned a positive return.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Tradewinds Corp Bhd is presented in Table . In respect to the market model,
the firm gained positive return before acquisition except for day -20; also the firm earned a positive CAR
after acquisition. On the other hand, based on the market adjusted model, the company earned a
negative return from -20 day to +15 excluding day +7 and +9. After +15, it earned a positive return so
there is a positive improvement after acquisition based on the market adjusted model. As a whole, it isfound that the acquisition brought a positive impact on the share price of the company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Wah Seong Corp Bhd is presented in Table . The analysis of CAR under the
market model shows that the firm gained positive return during the study period. In addition, the
outcomes based on the market adjusted model, indicate that the CAR for the firm was positive before
acquisition from -20 to -15, after -16 the CAR dipped to the negative zone and it continued until +4.
From +4 onward, the firm continued in the positive zone until +20, excluding day +8. Thus, these results
clearly indicate that the acquisition created a positive impact on the share price of the company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and themarket adjusted model for Atlan Holdings Bhd is presented in Table . The analysis of CAR in the market
model shows that the firm earned a positive return from -20 to +20. On the other hand, based on the
market adjusted model, CAR moved to negative zone from day -20 to +8 and switched to positive zone
from +9 to +14. Again it slumped to negative zone from +15 to +20 except for day +18 and +17. In
conclusion, the results indicate that the acquisition created a positive impact on the share price of the
company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Cymao Holdings Bhd is presented in Table . The CAR values under the market
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model clearly show a negative return during the study period. Also with regard to the market adjusted
model, the firm achieved positive CAR during -20 to -9 excluding day -18 and -10. Later, the firm showed
negative return from -8 to +20 excluding day +9, +10, +15 and +16. Thus, the results indicate that the
acquisition didnt create any positive return for the investors of the firm.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Denko Industrial Corp Bhd is presented in Table . Under the market model,
the firm gained positive CAR before and after acquisition. With respect to the market adjusted model,
CARs moved into the negative zone from day -20 to -10 and switched to positive zone during -9 to +20.
The analysis of CAR based on both models clearly indicates that the acquisition had a positive impact on
the share price of the company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for DXN Holdings Bhd is presented in Table . The analysis of CAR not only based
on the market model but also based on the market adjusted model clearly shows that the firm gained
positive CAR before and after acquisition. Thus, the above results signify that the acquisition brought a
positive return for the firm based on both models.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Eksons Corp Bhd is presented in Table . CAR calculated under the market
model reveals that the firm recorded a positive CAR not only before acquisition but also after
acquisition. Under the market adjusted model, the CAR of the firm was positive before acquisitionexcept for day -20, also after the acquisition CAR it was positive except for day +1, +3 and +11. In total,
the acquisition created a positive impact on the share price of the company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Furqan Business Organization Bhd is presented in Table . The examination of
CAR under the market model indicates that CAR is negative for the study period. In contrast, with regard
to the market adjusted model, the firm gained positive return both before and after acquisition except
for day -6, -2 and -1. Thus, these models imply a mixed impact of acquisition.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for GSB Group Bhd is presented in Table . The analysis of CAR under marketmodel clearly shows that the CAR was negative before and after acquisition. In addition, based on the
market adjusted model, the firm recorded positive CAR before acquisition except for -7, -6 and -1. After
acquisition, the firm gained negative return until day +20. The analysis represents the fact that the
acquisition created negative return for shareholders.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Integrated Logistics Bhd is presented in Table . It is to be noted that under
the market model, the firm earned negative value before and after acquisition. Similarly, the firm
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recorded negative CAR under the market adjusted model for the study period except for day -19. In
conclusion, this study confirms that the acquirer firm didnt earn a positive return for shareholders.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Mahajaya Bhd is presented in Table . It is significant that under both the
models, the firm earned negative return before and after acquisition, so acquirer firm didnt receive any
positive return after acquisition.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Mulpha international Bhd is presented in Table . The analysis of CAR in the
market model shows that the firm earned a positive return before and after acquisition. On the other
hand, based on the market adjusted model, the firm earned a negative CAR before acquisition exceptfor day -20, -19 and from -14 to -11. After the acquisition, the acquisition brought a positive return for
shareholders of the firm except day +1, +4, +5, +11 and +12. Thus, the above results clearly indicate that
the acquisition created a positive impact on the share price of the firm after acquisition.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for PMB Technology Bhd is presented in Table . The calculation of CAR under the
market model shows a positive return for the firm not only before acquisition but also after acquisition.
Based on the market adjusted model, the firm recorded negative CAR during -20 to -7 and switched to
the positive zone from -6 to +5. After +5, the firm gained positive CAR on +8, +9, +15, +16, +18 and +19
and negative return for other days. In the conclusion, the acquisition brought positive value forshareholders of the company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for QL Resources Bhd is presented in Table . Based on both the models, the firm
earned positive CAR before and after acquisition. On the whole, the acquisition created a positive
impact on the share price of the company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Ranhill Bhd is presented in Table . The results of CAR under market model
show that the firm gained positive return not only before acquisition but also after acquisition. The
results based on the market adjusted model, similarly confirms that the firm earned positive CAR valueduring the study period except for day -20. It is concluded that the acquisition created positive returns
for shareholders of company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for PMB Rex Industry Bhd is presented in Table . With reference to market
model, the firm earned positive CAR value during the study period. On the other hand, based on the
market adjusted model, the CAR for the firm was positive both before and after acquisition except for
day -20, -10, -8, -7, -1, +9 and +10. It is significant that the acquisition made a good impact on the share
price of the company.
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The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for SPK Sentosa corp Bhd is presented in Table . Under the market model, the
firm recorded negative CAR before and after acquisition. In addition, based on the market adjusted
model, the firm entered the positive zone from -19 to -4 except for day -8 and switched to the negative
zone until day -20. The above results clearly indicate that the acquisition had a negative impact on the
share price of the firm.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Sumatec Resources Bhd is presented in Table . Regarding the market model,
the firm recorded negative CAR for all days of the study period. On the other hand, CAR under the
market adjusted model, commenced its journey from the negative zone since day -20 to -12 and
dropped to the positive zone during -11 to +7 except -8 and -7 and again it crashed down to the negative
zone from day +8 onwards. The analysis represents the fact that the acquisition had a negative impact
on the share price of the firm.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Tiger synergy Bhd is presented in Table . In respect to the market model, the
CAR of the firm was positive before and after acquisition. In addition, CAR under the market adjusted
model commenced its journey from the negative zone since day -20 to -17 and switched to the positive
zone from -16 to +1 and again it dipped to the negative zone until day +20 except day +10 and +12.
Thus, these models imply a mixed impact of the merger.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for AirAsia Bhd is presented in Table . Based on the market model, the firm
experienced only negative value during the study period; also under the market adjusted model, the
firm gained positive CAR during day -20 to +8 except for day -19, -13 and -10 and switched to the
negative zone from +9 onwards until day +20. Thus, based on the above results, its clear that the
acquisition had a negative impact on the share price of the company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Amtel Holdings Bhd is presented in Table . The examination of CAR under the
market model clearly shows that the acquisition brought a negative impact for the share price of the
company before and after acquisition. Based on the market adjusted model, before acquisition the firm
experienced negative returns except for day -20, -17 during -15 to -12 and -10 and it continued its
negative trend after acquisition until day +20; after acquisition it experienced positive return only for
day +19. As a whole, it is found that the acquisition didnt bring any positive return for shareholders of
the company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Emas Kiara Industries Bhd is presented in Table . Under the market model,
the firm didnt experience any positive CAR during the study period. Based on the market adjusted
model, the firm gained positive CAR from -20 to +7 except day -20 and -8 and after +8, it dipped to the
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negative zone until day +20. In conclusion, the acquisition didnt lead to enhancement of the return of
the share price of the company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Evergreen Fibreboard Bhd is presented in Table . The examination of CAR
under the market model clearly shows that the firm earned negative CAR before and after acquisition.
Based on the market adjusted model, before acquisition the firm recorded negative CAR except -16;
after acquisition the firm recorded positive value during day +6 to +8 , day +11 to +15 and day +17. Thus,
these models imply mixed results of acquisition.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Emas Fima corp Bhd is presented in Table . The firm recorded negative CARduring the study period not only based on market model but also based on the market adjusted model.
It is clearly evident that the acquisition didnt bring any positive return for investors.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Jaycorp Bhd is presented in Table . The analysis of CAR under the market
model shows that the firm recorded negative CAR before and after acquisition. Based on the market
adjusted model, the firm recorded positive CAR during -20 to -18, after day -17, it earned positive value
only for day -14, -8, +2, +3 and +12. In conclusion, the acquisition failed to create a positive return for
shareholders.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Kuala Lumpur Kepong Bhd is presented in Table . Regarding the market
model, the firm experienced positive return before and after acquisition. Based on the market adjusted
model, the firm recorded positive CAR during day -20 to -17 and it dipped to the negative zone from -16
to+14 except for day +9. Day +15 onwards, it moved to the positive zone until day +19. Thus, it is found
that the acquisition had a positive impact on the share price of the firm.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Pelikan International Corp Bhd is presented in Table . The analysis of CAR
under the market model clearly shows that the firm experienced negative value for CAR before and after
acquisition. Regarding the market adjusted model, before acquisition the firm earned positive returnonly on day -8, -7 and -1 but after acquisition it experienced positive return until the end of the study
period. Thus, these models imply a mixed impact of acquisition.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Success Tranformer Corp Bhd is presented in Table . Under the market
model, the firm recorded negative CAR before and after acquisition. Based on the market adjusted
model, it experienced negative CAR for the whole study period except for day +1. Thus, the above
results imply that the acquisition failed to create any positive return for the investors.
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The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for Top Glove Corp Bhd is presented in Table . The results based on the market
model and the market adjusted model manifest that the firm gained positive CAR before and after
acquisition. In conclusion, the acquisition made a good impact on the share price of the company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for UMW Holdings Bhd is presented in Table . Under the market model, the firm
gained positive CAR before and after acquisition. On the other hand, based on the market adjusted
model, the firm recorded negative CAR during -19 to +9 except for day -18 and it switched to the
positive zone from +10 to +20. In conclusion, it is clear that the acquisition had a good impact on the
share price of the company.
The result of the Cumulative Abnormal Returns (CAR) calculated under the market model and the
market adjusted model for YTL Corp Bhd is presented in Table . The analysis of CAR under the market
model shows that the firm experienced negative CAR before and after acquisition. On the other hand,
based on the market adjusted model, the firm experienced negative CAR only during -20 to -18 and +18
to +20. Thus, these models imply the mixed impact of acquisition.
5. Conclusion
Regarding the impact of acquisition announcement on the share price of a company, referring to
Table , there are 21 companies which experienced a positive impact and similarly 21 companies which
experienced a negative impact. Thus, the number of companies in which acquisition announcement had
a negative impact on the share price is the same as the number of companies in which acquisition
announcement had a positive impact on the share price. In other words, the acquisition announcement
didnt have any significant impact on the share price of a company and investors failed to gain a
significant positive return after the acquisition announcement. The results might be justified and
explained based on two key issues: first the efficiency of KLSE is questionable. Second, it might be the
leakage of information to investors.
As a whole, based on the results and analysis it was found that the acquisition didnt bring any positive
return for the shareholders of the firm. The acquisition didnt have any positive impact on the share
price of acquiring companies during 2005 2008 in Malaysia.
References
Al-Sharkas, A. and M. Hassan (2010). New evidence on shareholder wealth effects in bank mergers
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ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
Campa, J. M. and I. Hernando (2004). Shareholder Value Creation in European M&As. European
Financial Management, Wiley-Blackwell. 10: 47-81.
Gunasekaran, I. and M. Selvam (2011). "Impact of Mergers on Stock Return in Indian Stock Exchange
with Reference to BSE." SSRN eLibrary.
Mangold, N. R. and K. Lippok (2008). The Effect of Cross-Border Mergers and Acquisition on Shareholder
Wealth: Evidence from Germany. Journal of International Business & Economics, International Academy
of Business & Economics (IABE). 8:29-54.
Manoj, A. and S. Jagandeep (2008). Impact of Merger Announcements on Shareholders' Wealth:
Evidence from Indian Private Sector Banks. Vikalpa: The Journal for Decision Makers, Vikalpa, Indian
Institute of Management, Ahmedabad (IIMA). 33: 35-54.
Mishra, A. K. and R. Goel (2005). "Returns to Shareholders from Mergers: The Case of RIL and RPL
Merger." IIMB Management Review (Indian Institute of Management Bangalore)17(3): 69-79.
Samitas, A. G.1, et al. (2007). "Impact of mergers and acquisitions on stock returns of tramp shipping
firms." International Journal of Financial Services Management 2: 327-343.
Shukla, A. and M. G. Gekara (2010). Effects of Multinational Mergers and Acquisitions on Shareholders'
Wealth and Corporate Performance. IUP Journal of Accounting Research & Audit Practices, IUP
Publications. 9: 44-62.
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APPENDIX
Table 1: The list of all acquirer company
No Date of acquisition Acquirer
1 3/18/2005 Asian Pac Holdings Bhd
2 3/15/2005 Berjaya Assets BHD
3 3/1/2005 Degem Bhd
4 2/7/2005 Dolomite Corp Bhd
5 3/17/2005 Ecofirst Consolidated Bhd
6 1/10/2005 Eden Inc Bhd
7 1/12/2005 Genting Bhd
8 3/25/2005 Genting Malaysia BHD
9 1/12/2005 Khind Holdings Bhd
10 12/13/2005 Kulim Malaysia BHD
11 3/8/2005 Lii Hen Industries BHD
12 11/18/2005 MBM Resources BHD
13 2/15/2005 Pharmaniaga Bhd
14 11/25/2005 Scomi Marine Bhd
15 1/19/2005 Silver Bird Group Bhd
16 2/3/2005 Supermax Corp Bhd
17 2/22/2005 Symphony House Bhd
18 1/17/2005 TAN Chong Motor Holdings BHD
19 3/29/2005 Tradewinds Corp Bhd
20 12/1/2005 Wah Seong Corp Bhd
21 11/28/2006 Atlan Holdings Bhd22 2/10/2006 Cymao Holdings Bhd
23 2/16/2006 Denko Industrial Corp Bhd
24 2/8/2006 DXN Holdings Bhd
25 12/22/2006 Eksons Corp BHD
26 3/3/2006 Furqan Business Organization BHD
27 3/3/2006 GSB Group Bhd
28 12/18/2006 Integrated Logistics Bhd
29 1/31/2006 Mahajaya Bhd
30 11/7/2006 Mulpha International Bhd
31 12/1/2006 PMB Technology Bhd
32 2/28/2006 QL Resources BHD
33 2/16/2006 Ranhill Bhd34 12/31/2006 Rex Industry Bhd
35 12/31/2006 SPK Sentosa Corp BHD
36 12/31/2006 Sumatec Resources Bhd
37 12/31/2006 TIGER SYNERGY BHD
38 1/9/2007 AirAsia BHD
39 3/13/2007 Amtel Holdings Bhd
40 1/15/2007 Emas Kiara Industries Bhd
41 2/13/2007 Evergreen Fibreboard Bhd
42 3/13/2007 Fima Corp BHD
43 2/6/2007 Jaycorp Bhd
44 3/19/2007 Kuala Lumpur Kepong Bhd
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45 1/31/2007 Pelikan International Corp Bhd
46 3/2/2007 Success Transformer Corp Bhd
47 3/16/2007 Top Glove Corp Bhd
48 1/17/2007 UMW Holdings Bhd
49 1/26/2007 YTL Corp Bhd
Table 2: Abnormal Returns of Acquirers on the announcement day based on the market model & market
adjusted model
No Date AcquirerMarket
model
Market Adjusted
Model
1 2004/03/19 Asian Pac Holdings Bhd -0.2953 -0.0033
2 2003/11/21 Berjaya Assets BHD -0.3101 -0.0167
3 2004/07/19 Degem Bhd -0.6652 -0.0006
4 2005/02/07 Dolomite Corp Bhd 0.0621 -0.0368
5 2005/03/17 Ecofirst Consolidated Bhd -0.1058 -0.0019
6 2003/06/12 Eden Inc Bhd 2.1736 -0.0025
7 2004/09/23 Genting Bhd 0.0488 0.0099
8 2005/03/25 Genting Malaysia BHD 0.0031 -0.0064
9 2005/01/12 Khind Holdings Bhd 0.4474 0.0096
10 2005/10/07 Kulim Malaysia BHD -0.1058 -0.002311 2005/03/08 Lii Hen Industries BHD -2.8570 -0.0212
12 2005/09/29 MBM Resources BHD 0.0437 0.0003
13 2004/09/28 Pharmaniaga Bhd -0.0454 -0.0155
14 2005/08/16 Scomi Marine Bhd -1.7350 -0.0670
15 2005/01/19 Silver Bird Group Bhd -0.1202 0.0110
16 2005/02/03 Supermax Corp Bhd 0.1632 0.0049
17 2005/02/18 Symphony House Bhd -0.0764 0.0053
18 2005/01/17 TAN Chong Motor Holdings BHD 0.2499 -0.0027
19 2003/05/13 Tradewinds Corp Bhd 0.0174 0.011620 2005/10/28 Wah Seong Corp Bhd 0.0225 0.0090
21 2006/11/28 Atlan Holdings Bhd 0.0674 0.0104
22 2005/06/06 Cymao Holdings Bhd -0.1148 0.0298
23 2006/02/16 Denko Industrial Corp Bhd 1.0308 -0.0010
24 2006/02/08 DXN Holdings Bhd 0.0140 -0.0103
25 2006/05/23 Eksons Corp BHD 0.2633 0.0208
26 2006/03/03 Furqan Business Organization BHD -0.0882 0.0656
27 2006/03/03 GSB Group Bhd -0.5787 0.0031
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No Date AcquirerMarket
model
Market Adjusted
Model
28 2006/12/18 Integrated Logistics Bhd -0.0912 -0.0125
29 2005/10/19 Mahajaya Bhd -0.4148 0.0092
30 2006/08/18 Mulpha International Bhd 0.0009 0.0086
31 2006/12/01 PMB Technology Bhd 0.2766 0.0582
32 2005/09/07 QL Resources BHD 0.0076 -0.0082
33 2006/02/16 Ranhill Bhd 0.6645 -0.0142
34 2005/02/16 Rex Industry Bhd 0.0085 0.0174
35 2006/11/22 SPK Sentosa Corp BHD -0.4616 -0.0074
36 2004/07/01 Sumatec Resources Bhd -0.2731 0.0185
37 2006/12/19 TIGER SYNERGY BHD 0.0308 0.0021
38 2007/01/09 AirAsia BHD -0.1483 -0.0117
39 2007/03/13 Amtel Holdings Bhd -0.1742 -0.0173
40 2007/01/15 Emas Kiara Industries Bhd -0.4445 -0.0072
41 2007/02/13 Evergreen Fibreboard Bhd -0.1906 0.0419
42 2006/09/20 Fima Corp BHD -0.1219 0.0033
43 2006/11/06 Jaycorp Bhd -0.0758 0.0182
44 2006/12/18 Kuala Lumpur Kepong Bhd 0.2754 -0.0005
45 2006/11/06 Pelikan International Corp Bhd -0.7344 0.0228
46 2006/05/10 Success Transformer Corp Bhd -0.2711 0.0546
47 2006/11/27 Top Glove Corp Bhd 0.5645 0.0005
48 2007/01/17 UMW Holdings Bhd 0.0095 0.0015
49 2007/01/26 YTL Corp Bhd -0.1579 -0.0055
Table 3: CAR of Asian pac holdings bhd before & after acquisition announcement Market model &
Market Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 -6.2053 0.1188 - - -
-1 -5.9099 0.1221 20 -12.1347 -0.0447
-2 -5.6164 0.0872 19 -11.8388 -0.0439
-3 -5.3214 0.0922 18 -11.5417 -0.0498
-4 -5.0244 0.1325 17 -11.2425 -0.0658
-5 -4.7297 0.0914 16 -10.9466 -0.0651
-6 -4.4348 0.0971 15 -10.6499 -0.0689
-7 -4.1396 0.1013 14 -10.3536 -0.0705
-8 -3.8420 0.0432 13 -10.0581 -0.0125
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-9 -3.5465 0.0933 12 -9.7617 -0.0734
-10 -3.2493 0.0373 11 -9.4645 -0.0795
-11 -2.9542 0.0416 10 -9.1690 -0.0769
-12 -2.6593 0.0474 9 -8.8730 -0.0211
-13 -2.3595 0.1191 8 -8.5738 -0.0375
-14 -2.0663 0.1766 7 -8.2779 -0.0959
-15 -1.7709 0.1343 6 -7.9823 -0.0382
-16 -1.4736 0.1275 5 -7.6873 0.0194
-17 -1.1806 0.0951 4 -7.3924 0.0250
-18 -0.8840 0.1374 3 -7.0952 0.0192
-19 -0.5910 0.1526 2 -6.7987 0.0164-20 -0.2957 -0.0018 1 -6.5003 -0.1135
Table 4: CAR of Berjaya assets before & after acquistion announcement Market model & Market
Adjusted Model bhd
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 -0.3101 -0.0167 - - -
-1 -0.3107 -0.0570 20 -0.3090 0.0087
-2 -0.3066 0.1130 19 -0.3093 -0.0113
-3 -0.3090 -0.0003 18 -0.3098 0.0273
-4 -0.3075 -0.0169 17 -0.3095 -0.0127
-5 -0.3091 -0.0369 16 -0.3077 -0.0220
-6 -0.3092 0.0436 15 -0.3080 0.0172
-7 -0.3083 0.0138 14 -0.3081 0.0159
-8 -0.3082 -0.0078 13 -0.3084 0.0050
-9 -0.3082 -0.0075 12 -0.3088 -0.0144
-10 -0.3087 0.0178 11 -0.3089 -0.0071
-11 -0.3084 -0.0236 10 -0.3099 0.0006
-12 -0.3086 0.0031 9 -0.3097 -0.0139
-13 -0.3094 -0.0036 8 -0.3086 -0.0124
-14 -0.3084 0.0196 7 -0.3085 0.0040
-15 -0.3097 -0.0207 6 -0.3082 -0.0012
-16 -0.3093 0.0121 5 -0.3087 0.0028
-17 -0.3096 -0.0054 4 -0.3101 -0.0476
-18 -0.3093 0.0199 3 -0.3107 0.0012
-19 -0.3089 -0.0137 2 -0.3091 -0.0166
-20 -0.3089 0.0159 1 -0.3081 -0.0293
7/30/2019 IMPACT OF ACQUISTION ANNOUNCEMANTS ON STOCK RETURN OF MALAYSIAN COMPANY
22/58
783
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
Table 5: CAR of Degem bhd before & after acquisition announcement Market model & Market
Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 -13.9525 -0.0320 - - -
-1 -13.2873 -0.0314 20 -27.3256 -0.5309
-2 -12.6275 -0.0266 19 -26.6493 -0.5252
-3 -11.9517 -0.0275 18 -25.9766 -0.5169
-4 -11.2753 -0.0289 17 -25.3081 -0.5188
-5 -10.6104 -0.0281 16 -24.6431 -0.5180
-6 -9.9400 -0.0250 15 -23.9834 -0.4804
-7 -9.2774 -0.0289 14 -23.3122 0.0155
-8 -8.6064 -0.0394 13 -22.6395 0.0104
-9 -7.9454 -0.0161 12 -21.9727 0.0097
-10 -7.2920 -0.0195 11 -21.3057 0.0090
-11 -6.6461 -0.0173 10 -20.6366 0.0066
-12 -5.9841 -0.0175 9 -19.9606 -0.0012
-13 -5.3311 -0.0041 8 -19.2953 -0.0006
-14 -4.6598 -0.0017 7 -18.6214 -0.0067
-15 -3.9954 -0.0004 6 -17.9592 -0.0038
-16 -3.3263 -0.0028 5 -17.2896 -0.0066
-17 -2.6563 -0.0059 4 -16.6241 -0.0062
-18 -1.9977 -0.0069 3 -15.9563 -0.0076
-19 -1.3374 -0.0025 2 -15.2880 -0.0094
-20 -0.6603 -0.0110 1 -14.6254 -0.0133
7/30/2019 IMPACT OF ACQUISTION ANNOUNCEMANTS ON STOCK RETURN OF MALAYSIAN COMPANY
23/58
784
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
Table 6: CAR of Dolomite corp bhd before & after acquisition announcement Market model & Market
Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 1.2420 0.0329 - - -
-1 1.1799 0.0697 20 2.4140 0.0374
-2 1.1272 0.0426 19 2.3576 0.0326
-3 1.0686 0.0419 18 2.2948 0.0055
-4 1.0082 0.0898 17 2.2319 -0.0046
-5 0.9498 0.1459 16 2.1692 -0.0155
-6 0.8924 0.0139 15 2.1128 0.0298
-7 0.8355 0.0102 14 2.0553 -0.0074
-8 0.7743 0.0603 13 2.0004 -0.0147
-9 0.7175 0.0080 12 1.9469 0.0088
-10 0.6623 0.0170 11 1.8855 0.0295
-11 0.6067 0.0264 10 1.8266 0.0455
-12 0.5489 0.0396 9 1.7651 0.0335
-13 0.4868 0.1033 8 1.7092 0.0279
-14 0.4263 -0.0069 7 1.6502 0.0440
-15 0.3699 -0.0116 6 1.5931 0.0566
-16 0.3104 -0.0107 5 1.5370 0.0184
-17 0.2498 -0.0078 4 1.4822 0.0428
-18 0.1838 -0.0285 3 1.4246 0.0403
-19 0.1231 -0.0091 2 1.3647 0.0575
-20 0.0605 -0.0027 1 1.3024 0.0787
Table 7: CAR of Ecofirst consolidated bhd before & after acquisition announcement Market model &
Market Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 -2.2279 0.0736 - - -
-1 -2.1221 0.0756 20 -4.3501 0.0646
-2 -2.0160 0.0348 19 -4.2444 0.0681
-3 -1.9097 0.0695 18 -4.1392 0.0356
-4 -1.8037 0.0697 17 -4.0328 0.0314
-5 -1.6979 0.0721 16 -3.9274 0.0382
-6 -1.5915 0.0673 15 -3.8217 0.0811
-7 -1.4861 0.0741 14 -3.7157 0.0392
-8 -1.3807 0.0812 13 -3.6088 0.0699
-9 -1.2753 0.0878 12 -3.5031 0.0729
7/30/2019 IMPACT OF ACQUISTION ANNOUNCEMANTS ON STOCK RETURN OF MALAYSIAN COMPANY
24/58
785
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
-10 -1.1689 0.1202 11 -3.3962 0.0630
-11 -1.0627 0.1175 10 -3.2907 0.0682
-12 -0.9560 0.0717 9 -3.1840 0.0193
-13 -0.8492 -0.0686 8 -3.0776 0.0546
-14 -0.7435 -0.0226 7 -2.9713 0.0506
-15 -0.6375 0.0173 6 -2.8655 0.0529
-16 -0.5319 0.0217 5 -2.7596 0.0540
-17 -0.4254 0.0160 4 -2.6537 0.0553
-18 -0.3194 0.0161 3 -2.5480 0.0583
-19 -0.2131 0.0127 2 -2.4413 0.0504
-20 -0.1067 0.0074 1 -2.3344 0.0795
Table 8: CAR of Eden inc bhd before & after acquisition announcement Market model & Market
Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 45.6523 0.1992 - - -
-1 43.4787 0.2017 20 89.1231 0.0959
-2 41.3036 0.1631 19 86.9507 0.0934
-3 39.1313 0.1597 18 84.7781 0.1036
-4 36.9574 0.1263 17 82.6061 0.1338
-5 34.7847 0.1374 16 80.4315 0.1293
-6 32.6085 0.1392 15 78.2575 0.1337
-7 30.4361 0.1366 14 76.0785 0.1719
-8 28.2621 0.1407 13 73.9024 0.1859
-9 26.0890 0.1412 12 71.7289 0.1997
-10 23.9162 0.1404 11 69.5557 0.2004
-11 21.7405 0.1648 10 67.3798 0.1897
-12 19.5634 0.2072 9 65.2067 0.2019
-13 17.3916 0.1769 8 63.0325 0.2072
-14 15.2170 0.1844 7 60.8615 0.1982
-15 13.0409 0.1853 6 58.6877 0.2245
-16 10.8673 0.1756 5 56.5145 0.2256
-17 8.6931 0.1935 4 54.3422 0.1994
-18 6.5200 0.1128 3 52.1696 0.2312
-19 4.3468 0.0998 2 49.9960 0.2664
-20 2.1736 0.0426 1 47.8252 0.2457
7/30/2019 IMPACT OF ACQUISTION ANNOUNCEMANTS ON STOCK RETURN OF MALAYSIAN COMPANY
25/58
786
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
Table 9: CAR of Genting bhd before & after acquisition announcement Market model & Market
Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 1.2100 0.0763 - - -
-1 1.1612 0.0664 20 2.2847 0.0466
-2 1.1205 0.0679 19 2.2298 0.0411
-3 1.0668 0.0617 18 2.1805 0.0730
-4 1.0042 0.0684 17 2.1265 0.0730
-5 0.9474 0.0586 16 2.0719 0.0735
-6 0.8865 0.0640 15 2.0192 0.0784
-7 0.8377 0.0599 14 1.9669 0.0711
-8 0.7845 0.0710 13 1.9122 0.0776
-9 0.7199 0.0966 12 1.8617 0.0749
-10 0.6608 0.0768 11 1.8167 0.0679
-11 0.6116 0.0963 10 1.7673 0.0702
-12 0.5455 0.0758 9 1.7094 0.0554
-13 0.4860 0.0740 8 1.6554 0.0613
-14 0.4369 0.0581 7 1.6067 0.0860
-15 0.3831 0.0457 6 1.5357 0.0874
-16 0.3076 0.0370 5 1.4756 0.0743
-17 0.2530 0.0375 4 1.4167 0.0539
-18 0.1887 0.0262 3 1.3607 0.0614
-19 0.1300 -0.0102 2 1.3110 0.0759
-20 0.0583 -0.0033 1 1.2678 0.0793
7/30/2019 IMPACT OF ACQUISTION ANNOUNCEMANTS ON STOCK RETURN OF MALAYSIAN COMPANY
26/58
787
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
Table 10: CAR of Genting Malaysia bhd before & after acquisition announcement Market model &
Market Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 -0.0195 -0.0665 - - -
-1 -0.0225 -0.0601 20 -0.0224 -0.0413
-2 -0.0259 -0.0432 19 -0.0114 -0.0427
-3 -0.0323 -0.0350 18 -0.0246 -0.0412
-4 -0.0190 -0.0429 17 -0.0343 -0.0364
-5 -0.0030 -0.0420 16 -0.0376 -0.0196
-6 0.0066 -0.0428 15 -0.0229 -0.0283
-7 0.0020 -0.0208 14 -0.0177 -0.0317
-8 0.0024 -0.0368 13 -0.0249 -0.0231
-9 0.0083 -0.0306 12 -0.0426 -0.0243
-10 0.0069 -0.0059 11 -0.0359 -0.0285
-11 0.0017 -0.0035 10 -0.0493 -0.0376
-12 0.0093 -0.0181 9 -0.0556 -0.0294
-13 -0.0041 -0.0213 8 -0.0561 -0.0567
-14 -0.0179 -0.0043 7 -0.0403 -0.0396
-15 -0.0309 0.0121 6 -0.0467 -0.0160
-16 -0.0235 -0.0024 5 -0.0298 -0.0579
-17 -0.0195 -0.0306 4 -0.0402 -0.0580
-18 -0.0072 -0.0229 3 -0.0280 -0.0653
-19 0.0095 -0.0228 2 -0.0206 -0.0700
-20 0.0007 0.0196 1 -0.0143 -0.0848
Table 11: CAR of Khind holdings before & after acquisition announcement Market model & Market
Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 9.4072 0.0147 - - -
-1 8.9598 0.0051 20 18.3953 0.0561
-2 8.5177 0.0421 19 17.9450 0.0289
-3 8.0703 0.0072 18 17.4968 0.0179
-4 7.6248 0.0136 17 17.0510 0.0238
-5 7.1773 0.0288 16 16.6034 0.0264
-6 6.7316 0.0222 15 16.1574 0.0320
-7 6.2818 0.0207 14 15.7023 0.0451
-8 5.8307 0.0168 13 15.2529 0.0444
-9 5.3800 0.0138 12 14.8052 0.0468
7/30/2019 IMPACT OF ACQUISTION ANNOUNCEMANTS ON STOCK RETURN OF MALAYSIAN COMPANY
27/58
788
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
-10 4.9326 0.0038 11 14.3557 0.0078
-11 4.4842 0.0049 10 13.9051 0.0048
-12 4.0350 0.0045 9 13.4540 0.0136
-13 3.5858 0.0169 8 13.0072 0.0176
-14 3.1355 -0.0114 7 12.5561 0.0010
-15 2.6902 0.0205 6 12.1033 -0.0058
-16 2.2392 0.0042 5 11.6509 -0.0249
-17 1.7884 0.0258 4 11.2008 -0.0270
-18 1.3434 0.0454 3 10.7549 0.0037
-19 0.8936 -0.0079 2 10.3073 0.0187
-20 0.4443 0.0044 1 9.8558 0.0016
Table 12: CAR of Kulim Malaysia bhd before & after acquisition announcement Market model &
Market Adjusted Model
Day Market ModelMarket Adjusted
ModelDay Market Model Market Adjusted Model
0 -2.1696 0.0130 - - -
-1 -2.0639 0.0153 20 -4.2813 -0.0530
-2 -1.9578 0.0002 19 -4.1729 -0.0521
-3 -1.8584 -0.0436 18 -4.0648 -0.0331
-4 -1.7534 -0.0335 17 -3.9567 -0.0393
-5 -1.6457 -0.0359 16 -3.8581 -0.0775
-6 -1.5473 -0.0288 15 -3.7627 -0.0683
-7 -1.4429 -0.0291 14 -3.6610 -0.0668
-8 -1.3334 -0.0325 13 -3.5557 -0.0791
-9 -1.2338 -0.0262 12 -3.4525 -0.0863
-10 -1.1353 -0.0227 11 -3.3486 -0.0862
-11 -1.0293 -0.0347 10 -3.2362 -0.0839
-12 -0.9261 -0.0235 9 -3.1285 -0.0602
-13 -0.8231 -0.0373 8 -3.0203 -0.0592
-14 -0.7170 -0.0315 7 -2.9020 -0.0538
-15 -0.6151 -0.0231 6 -2.7952 -0.0447
-16 -0.5151 -0.0205 5 -2.6890 -0.0284
-17 -0.4195 -0.0152 4 -2.5824 -0.0196
-18 -0.3138 -0.0057 3 -2.4761 -0.0175
-19 -0.2041 -0.0129 2 -2.3722 -0.0037
-20 -0.1021 -0.0012 1 -2.2674 0.0227
7/30/2019 IMPACT OF ACQUISTION ANNOUNCEMANTS ON STOCK RETURN OF MALAYSIAN COMPANY
28/58
789
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
7/30/2019 IMPACT OF ACQUISTION ANNOUNCEMANTS ON STOCK RETURN OF MALAYSIAN COMPANY
29/58
790
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
Table 13: CAR of Lii hen industries bhd before & after acquisition announcement Market model &
Market Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 -60.6509 -0.1610 - - -
-1 -57.7939 -0.1398 20 -118.4492 -0.5089
-2 -54.9351 -0.1851 19 -115.5766 -0.4753
-3 -52.0335 -0.1824 18 -112.6548 -0.4555
-4 -49.1390 -0.1706 17 -109.7907 -0.4603
-5 -46.2270 -0.2002 16 -106.8790 -0.4676
-6 -43.3057 -0.1812 15 -103.9772 -0.4338
-7 -40.4380 -0.1098 14 -101.0778 -0.4098
-8 -37.5535 -0.0838 13 -98.2026 -0.3802
-9 -34.6862 -0.0860 12 -95.3230 -0.3525
-10 -31.7809 -0.0536 11 -92.4439 -0.3254
-11 -28.8970 -0.0349 10 -89.5713 -0.3399
-12 -26.0003 -0.0200 9 -86.6572 -0.2746
-13 -23.0960 -0.0193 8 -83.7375 -0.2680
-14 -20.1838 -0.0088 7 -80.8312 -0.2354
-15 -17.2904 -0.0113 6 -77.9547 -0.2036
-16 -14.4122 0.0078 5 -75.0677 -0.2195
-17 -11.5506 0.0530 4 -72.1692 -0.1939
-18 -8.6764 -0.1078 3 -69.2860 -0.1864
-19 -5.8136 -0.0706 2 -66.4110 -0.1914
-20 -2.8867 -0.0632 1 -63.5089 -0.1607
7/30/2019 IMPACT OF ACQUISTION ANNOUNCEMANTS ON STOCK RETURN OF MALAYSIAN COMPANY
30/58
791
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
Table 14: CAR of MBM Resources bhd before & after acquisition announcement Market model &
Market Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 0.9345 -0.0036 - - -
-1 0.8908 -0.0039 20 1.7952 0.0146
-2 0.8499 -0.0036 19 1.7519 0.0212
-3 0.8034 -0.0046 18 1.7075 0.0218
-4 0.7562 -0.0010 17 1.6634 0.0256
-5 0.7133 -0.0023 16 1.6242 0.0164
-6 0.6689 -0.0056 15 1.5823 0.0179
-7 0.6243 0.0136 14 1.5407 0.0189
-8 0.5816 0.0123 13 1.5050 0.0134
-9 0.5363 0.0137 12 1.4626 0.0154
-10 0.4900 0.0011 11 1.4198 0.0139
-11 0.4412 0.0065 10 1.3773 0.0086
-12 0.3982 0.0166 9 1.3346 0.0071
-13 0.3574 0.0204 8 1.2906 0.0109
-14 0.3123 0.0104 7 1.2470 0.0104
-15 0.2672 0.0078 6 1.1995 -0.0045
-16 0.2254 0.0054 5 1.1565 0.0018
-17 0.1741 0.0097 4 1.1137 -0.0071
-18 0.1282 0.0118 3 1.0670 -0.0003
-19 0.0837 0.0010 2 1.0236 -0.0047
-20 0.0402 0.0005 1 0.9817 0.0004
Table 15: CAR of Pharmaniaga bhd before & after acquisition announcement Market model & Market
Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 -0.8821 -0.0274 - - -
-1 -0.8368 -0.0118 20 -1.7369 -0.0241
-2 -0.7879 -0.0107 19 -1.6944 -0.0331
-3 -0.7469 -0.0269 18 -1.6489 -0.0270
-4 -0.7011 -0.0122 17 -1.6099 -0.0120
-5 -0.6508 -0.0224 16 -1.5673 -0.0306
-6 -0.6076 -0.0227 15 -1.5217 -0.0247
-7 -0.5693 -0.0161 14 -1.4788 -0.0343
-8 -0.5279 -0.0233 13 -1.4361 -0.0149
-9 -0.4887 0.0005 12 -1.3924 -0.0159
7/30/2019 IMPACT OF ACQUISTION ANNOUNCEMANTS ON STOCK RETURN OF MALAYSIAN COMPANY
31/58
792
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
-10 -0.4428 -0.0224 11 -1.3484 -0.0173
-11 -0.3993 -0.0137 10 -1.3058 -0.0167
-12 -0.3622 0.0038 9 -1.2609 -0.0194
-13 -0.3220 0.0077 8 -1.2130 -0.0263
-14 -0.2764 -0.0149 7 -1.1674 -0.0299
-15 -0.2400 -0.0248 6 -1.1266 -0.0269
-16 -0.2000 -0.0206 5 -1.0836 -0.0269
-17 -0.1543 -0.0243 4 -1.0377 -0.0124
-18 -0.1112 -0.0245 3 -1.0040 -0.0182
-19 -0.0800 -0.0276 2 -0.9643 -0.0231
-20 -0.0374 -0.0079 1 -0.9241 -0.0193
Table 16: CAR of Scomi Marine bhd before & after acquisition announcement Market model & Market
Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 -36.3178 -0.1601 - - -
-1 -34.5828 -0.0930 20 -70.9705 -0.7377
-2 -32.8266 -0.0238 19 -69.2367 -0.7451
-3 -31.0983 -0.0334 18 -67.4963 -0.7364
-4 -29.3578 -0.0112 17 -65.7685 -0.7540
-5 -27.6119 0.0083 16 -64.0407 -0.6772
-6 -25.8725 0.0392 15 -62.3033 -0.5994
-7 -24.1541 -0.0348 14 -60.5934 -0.5755
-8 -22.4181 -0.0421 13 -58.8678 -0.5094
-9 -20.6671 -0.0393 12 -57.1384 -0.7855
-10 -18.9671 -0.0433 11 -55.4060 -0.7736
-11 -17.2447 -0.0295 10 -53.6640 -0.7305
-12 -15.5160 -0.0029 9 -51.9379 -0.7169
-13 -13.7933 -0.0315 8 -50.1884 -0.5383
-14 -12.0690 -0.0236 7 -48.4533 -0.5399
-15 -10.3276 -0.0276 6 -46.7049 -0.5326
-16 -8.5853 -0.0373 5 -44.9803 -0.5492
-17 -6.8547 -0.0478 4 -43.2488 -0.5306
-18 -5.1736 -0.0233 3 -41.5134 -0.5094
-19 -3.4368 -0.0255 2 -39.7877 -0.4677
-20 -1.7262 -0.0071 1 -38.0491 -0.1845
7/30/2019 IMPACT OF ACQUISTION ANNOUNCEMANTS ON STOCK RETURN OF MALAYSIAN COMPANY
32/58
793
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
Table 17: CAR of Silver bird group bhd before & after acquisition announcement Market model &
Market Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 -2.4820 -0.0386 - - -
-1 -2.3618 -0.0496 20 -4.8828 -0.0435
-2 -2.2459 -0.0097 19 -4.7608 -0.0223
-3 -2.1283 -0.0333 18 -4.6418 -0.0222
-4 -2.0068 -0.0124 17 -4.5210 -0.0080
-5 -1.8883 -0.0031 16 -4.3992 -0.0134
-6 -1.7708 0.0165 15 -4.2762 -0.0296
-7 -1.6586 0.0122 14 -4.1559 -0.0321
-8 -1.5412 0.0152 13 -4.0377 -0.0395
-9 -1.4256 0.0216 12 -3.9219 -0.0336
-10 -1.3081 0.0243 11 -3.8042 -0.0310
-11 -1.1924 0.0304 10 -3.6882 -0.0345
-12 -1.0725 0.0289 9 -3.5632 -0.0368
-13 -0.9514 0.0077 8 -3.4438 -0.0465
-14 -0.8308 -0.0040 7 -3.3261 -0.0264
-15 -0.7133 -0.0011 6 -3.2065 -0.0187
-16 -0.5950 0.0000 5 -3.0860 -0.0216
-17 -0.4758 -0.0004 4 -2.9650 -0.0081
-18 -0.3566 -0.0095 3 -2.8481 -0.0128
-19 -0.2363 -0.0118 2 -2.7270 -0.0167
-20 -0.1209 0.0035 1 -2.6043 -0.0324
Table 18: CAR of Supermax corp bhd before & after acquisition announcement Market model &
Market Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 3.4616 0.0376 - - -
-1 3.2984 0.0327 20 6.7167 0.0572
-2 3.1316 0.0393 19 6.5447 0.0643
-3 2.9688 0.0466 18 6.3733 0.0709
-4 2.8082 0.0310 17 6.2145 0.0747
-5 2.6483 0.0144 16 6.0536 0.0677
-6 2.4799 0.0226 15 5.8978 0.0769
-7 2.3203 0.0314 14 5.7449 0.0834
-8 2.1640 0.0328 13 5.5761 0.0917
-9 2.0070 0.0266 12 5.4122 0.0875
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794
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
-10 1.8454 0.0327 11 5.2433 0.0754
-11 1.6750 0.0130 10 5.0856 0.0900
-12 1.5080 -0.0104 9 4.9215 0.1021
-13 1.3492 -0.0151 8 4.7613 0.0987
-14 1.1843 -0.0142 7 4.6033 0.0934
-15 1.0170 -0.0027 6 4.4476 0.1056
-16 0.8388 -0.0032 5 4.2864 0.1031
-17 0.6714 -0.0180 4 4.1207 0.0947
-18 0.5002 -0.0251 3 3.9501 0.0700
-19 0.3331 -0.0134 2 3.7832 0.0475
-20 0.1623 -0.0074 1 3.6129 0.0530
Table 19: CAR of Symphony house bhd before & after acquisition announcement Market model &
Market Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 -1.5356 0.0618 - - -
-1 -1.4591 0.0565 20 -2.9881 -0.0134
-2 -1.3810 0.0616 19 -2.9112 0.0078
-3 -1.3069 0.0464 18 -2.8408 0.0097
-4 -1.2362 0.0604 17 -2.7682 0.0089
-5 -1.1691 0.0787 16 -2.6930 -0.0086
-6 -1.0992 0.0687 15 -2.6212 0.0051
-7 -1.0318 0.0743 14 -2.5511 0.0075
-8 -0.9505 0.0631 13 -2.4752 0.0161
-9 -0.8779 0.0623 12 -2.4089 0.0229
-10 -0.8079 0.0771 11 -2.3428 0.0432
-11 -0.7351 0.0883 10 -2.2762 0.0364
-12 -0.6606 0.1091 9 -2.2004 0.0318
-13 -0.5855 0.1509 8 -2.1261 0.0291
-14 -0.5168 0.1433 7 -2.0480 0.0349
-15 -0.4416 0.1278 6 -1.9679 0.0381
-16 -0.3639 0.1092 5 -1.8994 0.0157
-17 -0.2867 0.1371 4 -1.8273 0.0155
-18 -0.2129 0.0349 3 -1.7590 0.0064
-19 -0.1456 0.0406 2 -1.6823 0.0008
-20 -0.0759 0.0177 1 -1.6103 0.0398
7/30/2019 IMPACT OF ACQUISTION ANNOUNCEMANTS ON STOCK RETURN OF MALAYSIAN COMPANY
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795
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
7/30/2019 IMPACT OF ACQUISTION ANNOUNCEMANTS ON STOCK RETURN OF MALAYSIAN COMPANY
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796
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
Table 20: CAR of chong motor holdings bhd before & after acquisition announcement Market model &
Market Adjusted Model Tan
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 5.2301 0.0812 - - -
-1 4.9802 0.0839 20 10.1696 0.1007
-2 4.7354 0.0793 19 9.9239 0.0859
-3 4.4868 0.0856 18 9.6796 0.0863
-4 4.2368 0.0830 17 9.4367 0.0731
-5 3.9802 0.0669 16 9.1904 0.0763
-6 3.7301 0.0582 15 8.9413 0.0779
-7 3.4777 0.0529 14 8.6893 0.1060
-8 3.2278 0.0497 13 8.4395 0.0916
-9 2.9757 0.0377 12 8.1877 0.0972
-10 2.7287 0.0362 11 7.9474 0.0915
-11 2.4834 0.0322 10 7.6999 0.0908
-12 2.2374 0.0293 9 7.4502 0.1044
-13 1.9875 0.0137 8 7.2030 0.0806
-14 1.7387 0.0269 7 6.9570 0.0776
-15 1.4910 0.0204 6 6.7115 0.0682
-16 1.2432 0.0078 5 6.4608 0.0722
-17 0.9968 -0.0008 4 6.2155 0.0683
-18 0.7443 0.0059 3 5.9722 0.0671
-19 0.4987 0.0023 2 5.7285 0.0609
-20 0.2530 -0.0073 1 5.4820 0.0699
. Table 21: CAR of Tradewinds corp bhd before & after acquisition announcement Market model &
Market Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 0.2528 -0.0759 - - -
-1 0.2355 -0.0875 20 0.6552 0.1741
-2 0.2112 -0.0814th 19 0.6388 0.0604
-3 0.2026 -0.0825 18 0.6067 0.0082
-4 0.1966 -0.0848 17 0.6032 0.0289
-5 0.1841 -0.0698 16 0.5830 0.0084
-6 0.1716 -0.0837 15 0.5748 -0.0054
-7 0.1460 -0.0770 14 0.5324 -0.0438
-8 0.1459 -0.0677 13 0.5271 -0.0207
-9 0.1267 -0.0640 12 0.5071 -0.0430
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797
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
-10 0.1021 -0.0872 11 0.4949 -0.0167
-11 0.1036 -0.0784 10 0.4858 -0.0306
-12 0.0818 -0.0882 9 0.4481 0.0068
-13 0.0881 -0.0675 8 0.3970 -0.0283
-14 0.0888 -0.0728 7 0.3982 0.0047
-15 0.0824 -0.0608 6 0.3708 -0.0279
-16 0.0759 -0.0354 5 0.3302 -0.0708
-17 0.0501 -0.0287 4 0.3127 -0.0540
-18 0.0475 -0.0058 3 0.2899 -0.0216
-19 0.0274 -0.0017 2 0.2780 -0.0348
-20 -0.0082 -0.0180 1 0.2655 -0.0481
Table 22: CAR of Wah seong corp bhd before & after acquisition announcement Market model &
Market Adjusted Model
Day Market Model Market Adjusted Model Day Market Model Market Adjusted Model
0 0.4199 -0.0150 - - -
-1 0.3974 -0.0240 20 0.8288 0.0076
-2 0.3772 -0.0196 19 0.8107 0.0099
-3 0.3557 -0.0244 18 0.7915 0.0031
-4 0.3346 -0.0243 17 0.7753 0.0236
-5 0.3193 -0.0193 16 0.7536 0.0243
-6 0.3007 -0.0165 15 0.7317 0.0099
-7 0.2826 -0.0090 14 0.7103 0.0103
-8 0.2712 -0.0131 13 0.6936 0.0212
-9 0.2521 -0.0149 12 0.6673 0.0005
-10 0.2326 -0.0163 11 0.6376 0.0088
-11 0.2133 -0.0079 10 0.6195 0.0009
-12 0.1939 -0.0044 9 0.5956 0.0088
-13 0.1728 -0.0093 8 0.5768 -0.0089
-14 0.1523 -0.0048 7 0.5583 0.0041
-15 0.1271 0.0188 6 0.5405 0.0260
-16 0.1073 0.0127 5 0.5258 0.0200
-17 0.0877 0.0114 4 0.5078 -0.0032
-18 0.0636 0.0094 3 0.4896 -0.0059
-19 0.0433 0.0038 2 0.4713 -0.0136
-20 0.0248 0.0014 1 0.4467 -0.0101
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798
3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC
RESEARCH ( 3rd ICBER 2012 ) PROCEEDING12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA
ISBN: 978-967-5705-05-2. WEBSITE: www.internationalcon erence.com.m
Table 23: CAR of Atlan holdings bhd before & after acquisition announcement Market model & Market
Adjusted Model
Day Market Model Market Adjusted Model Day Market Mode