Effects of Synergy between Pre and Post Mergers in Electronic Industry

• Main Authors: KO, LI-CHING, 柯梨青
• Other Authors: LIN, SHU-LING
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/21323422936391289423

碩士 === 輔仁大學 === 金融研究所 === 96 === During the period of 2000 and 2002, Taiwan government had gradually passed some related corporation law of Mergers and Acquisitions (M&A), such as “Financial Institutions Merger Act“, “Financial Holding Company Act“ and “Business Mergers and Acquisitions Law“. However, people are concerned whether these acquirers make a right decision relating to “M&A” and create the positive effects on the operation of the enterprises. Besides, “M&A” has also become a main topic in the pass decades. The propose of this research focuses on the pre- and post performance in the electronic industry which presents high grow, short life cycle of product and rapid appearance of synergy. At the same time, this research will evaluate the differences between before and after business of M&A through the manufacturing and the commerce business which are divided from the electronic industry. This research is aimed at examining the companies on the Taiwan tock Exchange during the period of 2001 and 2004 and assessing whether here are magnificent distinction and influence between pre and post M&A via Operational Synergy, Market Synergy, Financial Synergy and Economic Value Added (EVA). Results firstly show the acquiring companies express the worse preformance on Return on Equity, Return on Assets and Net Income Ratio after M&A and it means Operational Synergy does not influence the electronic industry in Taiwan. Secondly, the acquiring companies show the decreases of Gross Rate of Sales and Assets Turnover Ratio and the increases of Inventory Turnover Ratio after M&A. It indicates that Market Synergy does not work in the electronic industry in Taiwan. Thirdly, there are great increases on Time Interest Earned and decreases on Degree of Operating Leverage in the electronic industry in Taiwan after M&A of the acquiring companies. It can be found that Financial Synergy does not exist. With reference to the result of EVA, the acquiring companies of the electronic industry point out the declines on EVA and it represents that EVA is not been advanced in Taiwan. Finally, regarding the acquiring companies of manufacturing in the electronic industry, it appears that Degree of Operating Leverage, Inventory Turnover Ratio and Time Interest Earned increase. On the contrary, the acquiring companies of the commerce business in the electronic industry only show that Inventory Turnover Ratio rises. Keyword: Mergers and Acquisitions (M&A), Operational Synergy, Market Synergy, Financial Synergy, Economic Value Added (EVA)