| Summary: | 碩士 === 國立暨南國際大學 === 財務金融學系 === 104 === In contrast to the previous literatures mostly focused on the impact of the proportion of institutional ownership on the corporate policies, this study use the institutional ownership stability and US merger data from 1984 to 2013 to explore the impact of institutional ownership stability on acquiring firms’ M&A decisions and post merger performance. The empirical results show that institutional ownership stability is significantly and positively related to merger completion, operating performance and buy-and -hold return, but, makes no impact on the method of payment for merger, cross-border merger, diversification merger, merger premium and announcement returns. The evidence reveals that the more stable institutional investors will not refer to short-term information to trade but supervise, manage and take action to help the company, and moreover, get a long-term reward from them. We also find that no matter the amount of institutional ownership, institutional ownership stability is still significantly and positively related to operational performance and buy-and-hold return. Finally, we find that public pension funds are more active in monitor post-merger performance than other types of institutions.
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