Cultural Influence over Firm Overpay Behavior in Mergers : A Real Option Approach

• Main Authors: PUN, NGOU-TENG, 潘傲霆
• Other Authors: LIN, LIN
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/7422pn

碩士 === 國立暨南國際大學 === 財務金融學系 === 106 === 　　Owing to globalisation, economic intergration led by of massive trades and technical development in the last few decades results in an exponential growth in corporate mergers. In literature managers’ behaviour and the goals of mergers would differentiate the post-merger performance. This research investigates the influence of the acquirer’s local religious beliefs over the pricing its target. The results show that local religion in which an acquirer is headquartered will signinficantly affect its investment decisions. The more religious a firm is, the more conservative its investment decision will be. Moreover, a firm with stronger religious belief are less likely to overpay its target, which explains the negative returns on its stocks traded in the short term.