The Determinants of Positive Abnormal Return : Efficiency improvement?

• Main Authors: Chen, I-EN, 陳怡恩
• Other Authors: Huang, Chai-Liang
• Format: Others
• Language: en_US
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/jtqy2n

碩士 === 國立中正大學 === 財務金融系研究所 === 105 === This paper use stochastic frontier analysis (SFA) to estimate the cost efficiency as the determinant of synergy to investigate the relationship between the efficiency and valuation effect of M&A. We analysis all M&A activities in America from 1980 to 2015. We find that the acquirers gain the higher stock reaction from their better prior year efficiency in M&A activities. Moreover, the shape of acquirer efficiency and change of Tobin’s Q is an inverted u-curve pattern. The post-merge value improvement in America is being led by the acquirer with appropriate efficiency level. There seems to exist an optimal efficiency level that can help to maximize the acquirer’s value after M&A transactions.