Corporate Acquisitions and the Operating Performance of Malaysian Companies


  • R. Abdul Rahman,

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  • R.J. Limmack

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       The authors are respectively Lecturer at UiTM, Shah Alam, Malaysia and Retired: formerly Professor of Accountancy and Finance, University of Stirling, Scotland. They wish to thank participants at the EFMA Conference, Athens, 2000 and an anonymous referee for their valuable comments. (Paper received May 2002, revised and accepted October 2002)

R. Abdul Rahman, Head of Consultancy (Finance), Institute of Research, Development and Commercialization Universiti Teknologi MARA, 40450 Shah Alam, Selangor, Malaysia.


We report improvements in long run operating performance for a sample of Malaysian companies that made acquisitions over the period 1988–1992. As the sample selected consists of acquisitions of private target companies, the analysis allows us to focus on the possibility of changes arising from non-disciplinary sources. The reported improvements do not appear to have been achieved by sacrificing the long-term viability of the combined firms in pursuit of shortterm objectives. However, as the target companies in the current study were previously privately-owned businesses, researchers and policy makers should be wary before generalising from these results.