THE EFFECT OF PUBLIC-LISTED COMPANIES'' M&A ANNOUNCEMENT IN TAIWAN

• Main Authors: Lu-yun Hsu, 許露云
• Other Authors: Yu-pei Hsu
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/zkramd

碩士 === 南華大學 === 財務管理研究所 === 95 === 　　The merger and acquisition (M&A) behaviors in Taiwan have grown rapidly for last ten years. By means of M&A activities, the enterprises of Taiwan are able to acquire more technology, know-how, capital, and resources of customers. Obviously, it is the shortcut for the enterprises of Taiwan to improve their competition. For M&A cases happened in the last ten years, whether the M&A activities increase the stockholder’s wealth of merging companies is worthy to discuss. When the information of M&A activities is revealed, how do the stock prices change as time goes by? And will the declaration effect influence the stock prices in the short run? This research collects 146 samples of the M&A events declared from 1989 to 2000 and uses the event study method to analyze empirically. Since traditional market model does not take the residual variances into consideration, this research adopts GARCH model to estimate the results. The empirical results are as follows: 　 1. The M&A activities of the public-listed companies in Taiwan positively affect the stock rate of return on the declaration day. 2. The declaration of M&A activities positively influences the return of the stock prices of the Hi-tech industry. 3. The declaration of relevant M&A activities affects the stock prices positively. 4. The declaration of the foreign countries M&A activities in influences the stock prices in a positive way. 5. Variables including M&A area, the relationship of industry, the firm’s past performance, etc, have significant explanatory power for the accumulated abnormal rate of return.