A STUDY ON IMPACT OF MANAGERIAL ABILITY ON MERGER AND ACQUISITION PERFORMANCE

SURASMAN, IMELDA KARTIKA and GANLIN, FESYA DEVINA PUTRI and Linawati, Nanik (2024) A STUDY ON IMPACT OF MANAGERIAL ABILITY ON MERGER AND ACQUISITION PERFORMANCE. In: The 4 th International Conference on Innovations in Social Sciences Education and Engineering (ICoIS, 20-07-2024 - 20-07-2024, Bandung - Indonesia.

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Abstract

The purpose of this study is to explore the correlation between managerial ability and the performance of mergers and acquisitions (M&A). The research examines the impact of managerial ability on both short-term and long-term performance of the acquiring firm. The period of study is from 2016 to 2021, using two metrics which are Market-to-Book Ratio (MTBR) to assess operating performance and Buy-and-Hold Abnormal return (BHAR) to quantify stock return performance. By analyzing data from a sample of M&A cases conducted by public companies registered within KPPU in Indonesia, this study aims to establish whether a positive correlation exists between managerial ability and M&A success. The research concludes that successful M&As depend on effective decision-making by managers, who play a critical role in navigating the complexities of integration and value creation. The findings can contribute to the understanding of factors that influence M&A outcomes and potentially improve investment decisions by emphasizing the importance of managerial competence in such endeavors.

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