Changes in Systematic Risk of Acquirers and Post-Merger Long-Run Performance

• Main Authors: Chieh Han, 韓傑
• Other Authors: Jun-Ming Hsu
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/83530428278574012310

碩士 === 國立中興大學 === 財務金融學系所 === 105 === This study attempts to investigate firms'' long-run stock performance and the changes of systematic risk after mergers and acquisitions(M&As). By utilizing the two-beta model(Campbell and Vuolteenaho(2004)), this study also examines the impact of two betas on long-run performance with different types of M&As. The results show that firms’ cash-flow beta declines after M&As. By contrast, firms’ discount-rate beta raises after M&As. Further, the pre-merger cash-flow beta has significantly positive impact on acquirers’ long-run performance and pre-merger discount-rate beta has negative impact on acquirers’ long-run performance. This implies that firms with good cash-flow prospects should perform well in the long run after M&As. Finally, the effects in cash-flow beta have different impacts according to the types of mergers. The cash-flow beta does not have significant impact on long-run performance in vertical M&As. This implies that investors are more care about the technical or product integration in vertical M&As.