What can we learn from mergers and acquisitions (M&A) in ASEAN? The role of family ownership and accounting conservatism

Over the past three decades, mergers and acquisitions (M&A) have emerged as a widely adopted strategic approach for firms seeking to enhance performance, expand into new markets, and strengthen competitiveness. However, many transactions fail to deliver the expected benefits, with failure rates estimated at 70%- 80%. This study examines the influence of family ownership, which represents a prominent organizational characteristic in Southeast Asia, on post-acquisition performance. Drawing on a dataset of 355 transactions involving publicly listed firms in Indonesia, Malaysia, and Singapore from the years 2000 to 2019, the results show that family ownership is positively associated with improved post-M&A performance. The study also investigates the moderating role of accounting conservatism. The results indicate that conservative financial reporting enhances the positive effect of family ownership by promoting transparency, reducing risk, and facilitating more effective post-deal integration. These findings remain robust across multiple sensitivity analyses, including alternative measures of performance and accounting conservatism, as well as controls for endogeneity. This study contributes to the limited M&A literature in emerging markets and offers practical insights for investors and policymakers on how family-oriented governance and conservative reporting practices can enhance the success of M&A activities in Southeast Asia.