Long-term Performance Analysis after Merge & Acquisition: Evidence in Taiwan’s Market

• Main Authors: Tsung-Pao Hu, 胡宗寶
• Other Authors: Anchor-Y Lin
• Format: Others
• Language: en_US
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/a9q8x3

碩士 === 國立中興大學 === 財務金融系所 === 102 === Do merge and acquisition create value for mergers and shareholders? This is still a puzzle for entrepreneurs and managers now. From many literatures, there are different views in this question. Some researchers support that it is good for the growth of a company, but still some argue that managers do M&A for their own benefit. Synergies is the most important issue that managers and shareholders concern. Besides, there are many empirical researches that check whether the performance of mergers improved. In Taiwan, there are a trend that performance of mergers declines in the following years after M&A. In this paper, I want to check whether the performance of mergers in Taiwan improved after M&A. First, I check whether the excess return of overall mergers in the following years exists. Second, I check whether the fundamental performance of mergers improved in the following years after M&A. Third, I separate mergers and targets into different groups by their sales and profit margin to determine whether they are big and strong. Then, I set performance score from literature review and check which group has the highest performance score. Finally, I check whether the highest performance score outperform the Taiwan market.