| Summary: | 碩士 === 國立成功大學 === 國際企業研究所碩博士班 === 101 === The primary objective in this study is to examine the impact of religion on bidder returns. By using a sample of M＆A announcements of public companies in America from January 1980 to December 2010, I find a consistent result that firms headquartered in areas with greater religious adherence are more likely to gain better returns upon M＆A announcements. In addition, for cash rich firms, firms headquartered in area with greater religious adherence are more likely to gain better returns upon M＆A announcement. Furthermore, if the target firms headquartered in areas with greater religious adherence, the acquiring firms are more likely to gain better returns upon M＆A announcement. More importantly, this study also indicates that religious social norms act as an alternative monitoring mechanism over corporate M＆A decision making and firms’ financial reporting quality. Thus, the problems of agency cost and the risk of overpayment for shareholders and managers of acquiring firms could be reduced.
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