| Summary: | 碩士 === 國立臺灣大學 === 會計學研究所 === 96 === This study examines the long-run stock-price performance and operating performances of those publicly traded Taiwan companies undergoing mergers and acquisitions during 1999 to 2003. We focus on the following two issues:
1. The postmerger three-year stock-price performances of the acquiring firms. Examine whether the abnormal stock returns of the acquiring firms after M&A are different from premerger ones.
2. Use EVA to measure the postmerger three-year operating performances of the acquiring firms. Examine whether the operating performances of the acquiring firms after M&A are different from premerger ones.
We measure the postmerger stock-price performances using cumulative average abnormal return（CAR）developed by Fama et. al.(1969). We take the effect of volatility cluster in consideration, so we use both OLS and GARCH to estimate the expected returns. We measure the postmerger operating performances using Economic Value Added（EVA） developed by Stern Stewart & Co. Besides, we also use EVA/IC to measure the postmerger operating performance in the spirits of Healy, Palepu, and Ruback (1992).
The main empirical findings are summarized as follows: The postmerger stock-price performances of electronic companies are significant negative abnormal returns over the 271-520 and 521-770 day period following the M&A announcement, which means the abnormal stock returns of the electronic acquiring firms after M&A are worse than premerger ones. Non- electronic companies have no significant abnormal returns both in OLS and GARCH method, which means the abnormal stock returns of the non-electronic acquiring firms after M&A are not different from premerger ones. Besides, we also find that using OLS and GARCH to estimate the expected returns will result in the same outcomes of the abnormal stock returns.
There is no significant finding in using EVA to measure the postmerger operating performances of the acquiring firms: Using OLS to estimate Beta, the-first-year postmerger EVA of electronic companies shows significant negative differences from premerger ones; the-third-year postmerger EVA of non-electronic companies shows significant negative differences from premerger ones. Using EVA/IC to measure the three-year postmerger operating performance, we find that electronic companies show significant negative differences from premerger ones both in using OLS and GARCH to estimate ; non-electronic companies show no significant differences from premerger ones both in using OLS and GARCH to estimate Beta.
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