Revising EVA Model: The Short and Long Term Performances of M&;A ─ The Empirical Study of Taiwan Listed Company

• Main Authors: Fu-Lin Hsu, 許馥麟
• Other Authors: Joseph C.P. Shieh
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/sfwmwk

碩士 === 國立臺灣科技大學 === 財務金融研究所 === 102 === This study uses TEJ database to collect M&;A cases between 2000 and 2009, which the acquiring companies are the listed companies in Taiwan. The sample consists 205 M&;A cases. Using 「Financial Index Method」, this study evaluates if the financial performance would be significantly different after the listed companies completing the M&;A process. In the same time, this study adopts EVAOE as the performance index, using difference analysis and multiple regression analysis, to discuss the difference between the pre- and post-M&;A financial performances and the influential factors. The past researches used ROE, ROA, EPS, and Economic Value Added to measure the stock return and firm value of the corporations. However, comparing to EVA, EVAOE could be adopted to compare the financial performance between different scales. In addition, EVAOE would provide incremental information in measuring the stock return and firm value. The empirical results show that the short-term financial performance would not be significantly different after M&;A. But the difference between the average 3-year EVAOE after M&;A and the average 3-year EVAOE before M&;A, the difference between the third year’s EVAOE after M&;A and EVAOE of the year before M&;A, and the difference between the average 3-year EVAOE after M&;A and EVAOE of the year before M&;A all are significantly negative. Revising EVA model, this study uses six financial factors to analyze which factor influences the difference of EVAOE. When the corporations completed the M&;A process, the reduction of profit margin, the increase of the use of financial leverage, and the increase of WACC would be the main influential factors of the decrease of EVAOE. Therefore, after M&;A, the corporations must increase the profit margin and reduce the use of financial leverage and WACC, to avoid the long-term financial performance being worse.