The Merging Price Premium and the Ex-Post Performance of Mergers

• Main Authors: Wen-Ting Li, 李文婷
• Other Authors: Yung-Ming Hsieh
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/69225465911157056835

碩士 === 東吳大學 === 會計學系 === 102 === With the recent changes in the economic environment and the industry competition increasingly fierce, coupled with the trends of economic liberalization and internationalization, many companies one after another tend to use the merger & acquisition (M&A) as a mean of their development on globalization. The purpose of this study is to investigate whether the ex-ante pricing premium of M&A is related to ex-post operation performance of the mergers or not. The research sample includes the listed companies with M&A events happened during year 2006 to 2011 and the sample data is collected from the Taiwan Economic journal database (TEJ). The ex-ante pricing premium is measured by a ratio of the premium divided by the purchasing price of M&A and the ex-post performance is measured by the increase (decrease) of ratio of return on total assets (SROA) or the increase (decrease) of earnings per share (SEPS) of current period relative to previous one. The OLS regression is used to examine whether the ex-ante premium is associated with the SROA or SEPS in five years post the M&A. The empirical results show that the ex-post performance is not related to the ex-ante premium, which implies most of mergers do not earn the expected benefits from the M&A.