Abstract
This study examine the impact of Firm reputation and CEO Characteristics toward firm performance after corporate action acquisition and merger. This study also examines how CEO characteristics mediates firm reputation to maximize firm performance after acquisition. This research objectives are firm that listed in Indonesia stock exchange between 2010 till 2016 and executing corporate action mergers and acquisitions. To select the research sample, this research conducted purposive sampling. This research data analysis are using e-views program to conduct descriptive statistical test, outlier test and hypothesis test. The results of this study show that by choosing an experienced, capable and aggressive CEO can maximize firm reputation and firm performance. We also find that a capable and experienced CEO able to mediates firm reputation as resources for maximize the firm performance. These research findings will be helpful for management in maximize firm performance by using acquisition and merger as business strategy, management can set the standard requirement for firm reputation and choosing a new CEO to take charge in acquisition project as their intangible resources. The novelty of this research are provide a new insight of acquisition as how CEO characteristics effect firm performance by using firm reputation as mediating variable.
Highlights
Corporate action, acquisitions and mergers are important strategy or tool used by companies in today’s business environment
Descriptive statistics giving a brief information about Indonesia Characteristics like acquisition performance and acquisition experience
Indonesia CEO mostly have more than one times acquisition experience and the acquisition are mostly in the same industry
Summary
Acquisitions and mergers are important strategy or tool used by companies in today’s business environment. The essence of mergers and acquisitions is called synergy which are the value of two joint companies shall be greater than one. Companies acquired or joint with other companies to combine their strengths which will increase profitability and market share that are essential expansion or the survival of company. Acquisition and merger allow firms to work together as big entities. With M&A strategy, companies can increase their market value. Mergers and acquisitions become tool or strategy of survival and as a competitive weapon of business companies in the world today (Alam et al, 2014)
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