A Positive Research on the Impact of Announcement of Strategic Alliance and M&A to Stock Price－Using Taiwan Banks, Securities Companies and Financial Holding Corporations as examples

• Main Authors: CHEN, TZU-YIN, 陳姿吟
• Other Authors: 梁瓊如
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/50562691438736475177

碩士 === 國立臺灣科技大學 === 企業管理系 === 91 === The global economic environment changes from day to day. Taiwan has been a member of the World Trade Organization（WTO） since 2002. The government has made the law of financial holding corporation in Jun 2001. This law is to orient financial institutions toward large conglomerate. Large scale, diversification and cross-selling are the future trends of financial industry. To integrate all resource, and use them to create profit is very important for financial institutions. Recently, managers, investors, and the government all pay much attention on growth strategies of organizations. Strategy alliance and merger and acquisition (M&A) are common models of growth strategy. The purpose of this paper is to study the impact of announcement of strategic alliance and M&A to stock price. We focus on banks, securities companies, and financial holding corporations (FHC). The sample period of this paper includes 79 M&A announcement events, and 237 strategic alliance announcement events from 1993 to 2003. This paper distinguishes the samples into non-equity involvement alliance, equity-involvement alliance and M&A in terms of the degree of stock equity involvement. It also distinguishes the samples in terms of the content of cooperation. Using event study method and empirical model to compare abnormal return (AR) and cumulative abnormal return (CAR) of the different types of alliances when the events were been announced. The empirical results are as follows: 1. The stock price didn’t have significant positive effect when firms announced strategic alliance or M&A. 2. The announcements of the different industries have different effects on stock price significantly. The AR and CAR of financial holding corporations are positive, and are higher than others. 3. The announcements of different degree of involvement of stock equity have different effects on stock price significantly. For securities companies and financial holding corporations, the announcement with higher degree of stock equity involvement is better than lower degree of stock equity involvement. For banks, the announcement with lower degree of stock equity involvement is better than higher degree of stock equity involvement. 4. For banks, the announcements of the different content of cooperation have different effects on stock price significantly. The announcement of financial businesses cooperation has significant positive effect, and is better than others. 5. For securities companies, the announcements of the different content of cooperation have different effects on stock price significantly. The announcement of marketing channel cooperation has significant positive effect, and is better than others. 4. For financial holding corporations, the announcements of the different content of cooperation have different effects on stock price significantly. The announcement of joint-venture cooperation has significant positive effect, and is better than others.