| Summary: | 碩士 === 國立臺灣大學 === 財務金融學研究所 === 105 === This paper examines the effect of price premium in cash to long term accounting performance. Acquirers are willing to pay the premium due to the prospect of performance if merged. As a result, price premium has the positive effect on long term accounting performance in Post-takeover. However, part of price premium is from the merger and acquisition costs, and the cost is more in the hostile cases than in the friendly cases. This fact results that price premium has more positive effect in the friendly cases than in hostile. All our merger case paid in cash is from the U.S. range from 1980 to 2014 and we construct the benchmark by SIC code in every case. We calculate the abnormal accounting performance by comparing the case accounting performance with their benchmark. We found out price premium have significant but small positive effect in the friendly case and it is not significant in hostile case. In addition, we made a series of test in prior-takeover performance, post-takeover performance. We can conclude that it is no significant difference in abnormal accounting performance between prior and post. The target in hostile cases does not underperform compared with their benchmark. So the discipline theory is not valid in empirical.
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