Real Gains from Corporate Acquisitions in Taiwan

• Main Authors: Seng-Yuan Yang, 楊勝淵
• Other Authors: Shao-Chi Chang
• Format: Others
• Language: zh-TW
• Published: 1999
• Online Access: http://ndltd.ncl.edu.tw/handle/81749134265243389722

碩士 === 國立成功大學 === 國際企業研究所 === 87 === To avoid potential bias resulted from asymmetric information between traders and outside investors during takeover announcement, we follow the real gain idea proposed by Healy et al. (1992) taking industry-adjusted operating cash flow return to measure the performance improvement after acquisitions. This study examines post-acquisition performance for 45 acquisitions between 1987 and 1996 in Taiwan. We found that acquiring firms show significant recession, while acquired firms show insignificant improvement in asset productivity relative to their industries after acquisitions. Those results are not affected by whether our samples went public or not. Our findings also suggest a larger performance improvement when a bidder chooses to acquire a relative small target and to use non-stock exchange as method of payment.