Abstract:

This study examined the role of exchange rate in ASEAN firms’ CBMA success. This is due to the active involvement of ASEAN firms in CBMA and also the high rate of non-value creation involving CBMA transactions. In addition, high exchange rate volatility in ASEAN countries provides a perfect backdrop for this study. This study used CBMA involving 348 ASEAN bidding firms and 246 ASEAN target firms from the year 2002 to 2013. The results indicate that exchange rate strength is disadvantageous for ASEAN firms as it would decrease the possibility of CBMA success.