Financial Condition of Firms and M&A
碩士 === 元智大學 === 財務金融暨會計碩士班(財務金融學程) === 106 === Since the year of 2007, the activities of M&A continue to heat up. Especially, a new record of transaction size of M&As has been broken with more than 4.5 trillion USD in 2015. It indicates that M&A is an important strategy for firms to expa...
| Main Authors: | , |
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| Format: | Others |
| Language: | en_US |
| Published: |
2018
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| Online Access: | http://ndltd.ncl.edu.tw/handle/4t6634 |
| Summary: | 碩士 === 元智大學 === 財務金融暨會計碩士班(財務金融學程) === 106 === Since the year of 2007, the activities of M&A continue to heat up. Especially, a new record of transaction size of M&As has been broken with more than 4.5 trillion USD in 2015. It indicates that M&A is an important strategy for firms to expand or survive. There are few studies to research the relationship between financial condition and M&A. We use all mergers and acquisitions announced between 2005 and 2015 in U.S. The least squares regression, Probit model regression and Logit model regression will be used that explore the relationship between M&A transactions and z-scores of acquirer firms and target firms. The results show that both acquirer firms and target firms with greater financial condition intend to take M&A strategy or be the target to be acquired. There are no consistent results of financial improvement of firms after M&A measured by t-test. However, the ordinary least squares regression result show that only healthy firms take M&A strategy will improve its financial condition.
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