DETERMINANTS OF PREMIUMS：AN EMPIRICAL INVESTIGATION OF TAIWANESE IT INDUSTRIES MERGERS AND ACQUISITIONS

• Main Authors: Hsu Ming-Jen, 許明仁
• Other Authors: Goo, Yeong-Jia and Fang, Chen-Ray
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/63827353508998199337

碩士 === 國立臺北大學 === 企業管理學系碩士在職專班 === 95 === This study empirically investigates the determinants of mergers and acquisitions (herein, M&A) premiums of intelligence technology (herein, IT) industry in Taiwan. Motivations of this study are based on the following observations in related literature: First, work on determinants of M&A premiums centers either on firms across different industries or specific industries such as banking industry and aerospace industry, etc. It lacks of studies focusing on intelligence technology industry. Second, variables affecting M&A premiums employed in literature are mostly financial variables and thus ignoring non-financial factors such as M&A synergy and M&A motive. Finally, except for some case studies, there is no work examining the determinants of M&A premiums of intelligence technology industry in Taiwan. This study specifies a multiple regression model to investigate the determinants of M&A premiums using financial and non-financial data, obtained from Market Observation Post System, of mergers and acquisitions in Taiwanese intelligence technology industry for the period 1996-2005. The explained variables includesd are profitability of the target firm, market to book value ratio of the target firm, the relative size of the acquiring firm to the target firm, the relative price to earnings ratio of the acquiring firm to the target firm, debt to asset ratio of the target firm, composite index of the electronic industry, and a strategic dummy representing horizontal integration or vertical integration. Several findings are summarized. First, the specified model performs satisfactorily well. Second, profitability of the target firm, market to book value ratio of the target firm, debt to asset ratio of the target firm, and composite index of the electronic industry are found to be negatively related to the M&A premiums in Taiwanese intelligence technology industry. The relative size of the acquiring firm to the target firm and the relative price to earnings ratio of the acquiring firm to the target firm are found to be positively related to the M&A premiums in Taiwanese intelligence technology industry. The strategic dummy is negatively related to the M&A premiums, indicating that the horizontal integration has a higher M&A premiums.