The Determinants of Merger Premiums and Wealth Gains: A Global Perspective

• Main Authors: VO THANH TAI, 武清財
• Other Authors: Chai-Liang Huang
• Format: Others
• Language: en_US
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/w67r8x

碩士 === 國立中正大學 === 國際財務金融管理碩士學位學程 === 107 === This paper will investigate and discuss whether Malmquist index affects Merger premiums in Merger and Acquisition transactions on over the world for the period 1993-2016. To further demonstrate the Malmquist index is positively associated with takeover premiums. In conjunction, this paper also examines how the level of premiums paid impacts the short-run performance of both acquirer and target firms. The results indicated that the higher premium paid by acquirers, the higher cumulative abnormal return of target and acquirer over 3 day window. As the consequences, results are proven to be robust after controlling for a variety of firm characteristics, industry characteristics and country characteristics. Since Malmquist index has positively impacted on merger premium and merger premium is also positive and significant influence on cumulative abnormal return, this paper also try to explore whether there is a relationship between Malmquist index and short-term cumulative abnormal returns. Overall, the results indicated that short-term cumulative abnormal returns of targets and acquirers are confirmed to be positively correlated with the Malmquist index.