Determinants of goodwill and its impact on post-merger and acquisition performance in Thailand: a firm-level analysis
Thailand’s merger and acquisition (M&A) landscape between 2008 and 2019 is explored in this study, which identifies the key drivers of goodwill, such as the target’s customer base, intangible assets, and expected synergies, and assesses how these factors influence post-acquisition performance.
Using firm-level data and advanced estimation models, the study finds that while the direct effect of core and abnormal goodwill on profitability is generally not significant, the interaction of core goodwill with an acquirer’s inherent strengths enhances post-acquisition earnings. In contrast, the interaction of abnormal goodwill with target size dampens performance in the early years. The findings highlight the importance of strategic synergy realization and prudent goodwill valuation in Thailand’s evolving M&A market.