The Effects of M&A Announcement of Stock Returns for Financial Holding Company

• Main Authors: Hsia Yi Chin, 夏宜勤
• Other Authors: Robert L.T. Kan
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/23532661634779371278

碩士 === 中國文化大學 === 國際貿易學系碩士班 === 95 === In the past years, the operations of the M&A become the popular subject in Taiwan. Because financial institutions have been facing against the transformed period of indus-trial structure and operational procedure, the financial institution diversify their products by M&A became a trend. This study attempts to examine the effects of stock returns at the announcement date of mergers and acquisitions events in the Financial Holding Company. The sam-pling period of this study is from 2002 to 2006 and there were 27 acquiring firms which listed on the Taiwan Stock Exchange declared the information about M&A. We used a market model of event study to analyze if the acquiring firm’s stock returns at the an-nouncement date of M&A would appear abnormal returns. The first purpose to discuss that if any significantly average abnormal returns happened to acquiring firms on the event day of merger was announced. The second purpose to discuss that during the pe-riod of window event test from -20 to +20, the cumulative average abnormal returns happened to acquiring firms or not. The third purpose to discuss that this results form this study shows us that stock price of acquiring firm didn’t have significantly AR and CAR effect during the period of the M&A announcement. According to the test result of this research, when the domestic financial holding company declare an important M&A event, there is an significantly average abnormal returns happened on the event day of merger was announced. That test result means the M&A Announcement has positive information effect, and the effect just ends during two days. The test result indicate the semi-strong form efficiency hypothesis exist in Taiwan stock market.