| Summary: | 碩士 === 國立中興大學 === 會計學研究所 === 100 === With the economic globalization and the trade liberalization is coming, companies begin to seek to merge with other companies in order to access to new technologies and capital to achieve rapid growth. M & A activity has become the means for international companies. Some companies in order to save consultation time, to tender offer or acquisition of proxies to conduct a hostile takeover. In order to avoiding becoming the next acquisition targets, the companies have also developed a set of anti-takeover defense measures, such as shark repellent, poison pill, seeking white knight et al.. This paper studies the effects of the target companies taking the anti-takeover defense measures when facing hostile takeover on the performance of acquiring companies. In addition, this study also investigated whether the hostile takeover can bring sustainable growth and increase shareholder interests for the acquiring companies.
In this study, data were collected from Security Data Company (SDC), which contained the world''s hostile takeover events covering the period 1999-2008. We found that when the target companies adopt anti-takeover defense measures, the acquiring companies cannot produce long-term synergy effects. Although the stock market gives the positive expectations for the acquisition announcement, the cumulative average abnormal returns (CAR) do not perform better than the target companies which do not take the defense measures.
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