| Summary: | 碩士 === 國立成功大學 === 財務金融研究所 === 107 === This thesis analyzes a sample of 429 Taiwan listed companies between 2011 and 2017 to examine the relevance between managerial overconfidence and corporate M＆A decision. A manager is classified as overconfident if the press portrayals of whom include more positive keywords than neutral or negative ones. Empirical results show that there is a significantly positive relationship between overconfident manager and acquisition activities, according to the logistic regression analysis. It implies that the companies with overconfident mangers are more likely to conduct acquisitions than the companies with rational ones.
Also, the thesis investigates the impact of managerial overconfidence to post-acquisition performance. I measure the short-run market reactions to the bid and long-run post-acquisition performance using event study methodology. According to the results of multiple regression analysis, the relevance between managerial overconfidence and acquisition announcement effect is not strongly significant. However, we could find that average cumulative abnormal returns of overconfident mangers’ acquisition fluctuate more dramatically than those conducted by rational managers. As for the long-term performance, managerial overconfidence is slightly and positively related with long-run post-acquisition performance. It indicates that overconfident manager perform great managerial ability in merged company and create firm value as time passed.
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