THE EFFECT OF PARTIAL MERGER & ACQUISITION ACTIVITIES ON TARGET FIRM’S PERFORMANCE: A CASE STUDY FROM BANKING AND FINANCE INDUSTRY IN VIETNAM

Cao Đình Kiên , Lê Thái Phong , Trần Thị Kim Anh, Nguyen Bao Tuan

Abstract

Abstract

Using 25 M&A transactions in banking and finance industry during the period 2005-2013, we examine the impact of partial M&A deals on performance of target firms in banking and finance industry in Vietnam. We find that most of M&A transactions in banking and finance industry in Vietnam are partial transactions. Moreover, in term of performance, the partial M&A transactions have a significant negative impact on ROE, ROA, and EPS of the target firms.

Keywords: Partial acquisitions, banking and finance industry