| Summary: | 碩士 === 東吳大學 === 會計學系 === 88 === ABSTRACT
The stability of economy, bull market, and the release of restrictions on M&A activities encourage the increasing M&A activities in Taiwan. This study attempts to examine the information content of announcing M&A events. The sample includes 97 listed firms exchanged on the Taiwan Stock Exchange which ever declared to acquire other firm for the first time during the period 1990-1998 and for which necessary data were available. This study adopts event study methodology, and considers that if Arch effect is found in the market model, GARCH model will be used instead. This research finds out that:(1) There is a negative relation between the insider’s ownership and the bidder’s gains. (2) There is a significant negative relation between the percentage of bidder common stock owned by other firms and the bidder’s gains. (3) The bidders who have worse management performance gain significantly more than the bidders who have better management performance. (4) The less the free cash flow of the acquiring firm is, the higher the bidder gains is. (5) Announcing of international or domestic M&A event doesn’t affect the bidder gains differently. (6) Announcing of inter-industry or intra-industry M&A event doesn’t affect the bidder gains differently. (7) The percentage of bidder common stock owned by other firms and trust institutions, corporate performance, free cash flow, inter-industry or intra-industry M&A and the size of the bidders are explanatory variables of bidder’s gains.
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