| Summary: | 碩士 === 中國文化大學 === 會計研究所 === 89 === This paper examines the determinants of the medium of exchange to Taiwan’s ac-quiring securities firm characteristics. The sample includes domestic mergers and ac-quisitions of both listed and privately held corporations during the 1991-2000 period. The M&A merger roster are collected by Taiwan Stock Exchange Corporation. Ac-counting information is obtained from Taiwan Economic Journal.
The payment method is grouped into two financing categories. One is financed through stock exchange. The other is financed with cash, or cash plus debt, or the as-sumption of liabilities. The study first uses Wilcoxon Rank Sum Test and t-test to ex-amine the differences between two groups, and then uses Logit regression model to find out the major factor, which affects the medium of exchange.
According to the results of Wilcoxon Rank Sum Test and t-test, we find that, in all samples, the stock-exchanged group has the higher rate of equity and the lower debt rate. In listed security firms, the cash-exchanged group has the smaller size and the higher rate of equity.
Using Logit regression model, we find that, in all securities firms, the major factor is the debt rate. The larger the debt rate is, the more probability is that the acquiring firm tends to merger the target firm via stock exchange. In listed securities firms, the larger the rate of equity is, the more probability is that the acquiring firm tends to acquire the target firm’s assets with cash, or cash plus debt.
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