The Study of Operation Performance and Diversification Strategy on Short and Medium-term Stock Performance.

• Main Authors: Chi-Sheng Tsai, 蔡奇勝
• Other Authors: Chung-Hsien Wu
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/38869424213734308361

碩士 === 真理大學 === 管理科學研究所 === 91 === The study analysis the acquired companies’ short-term and medium-term stocks abnormal return by acquired and acquiring companies operation performance and diversification strategy to know the difference. In this research, it collects the data of the buyer and acquired companies both list in TSE(Taiwan Stock Exchange) or OTC (Over-The-Counter) over the period of January 1992 to December 1999. Finally the sample includes the 35 bidders. The empirical findings indicate that： 1. There is a significant positive abnormal return of all bidders in the short-term. 2. There is no significant abnormal return of all bidders in the medium-term. 3. In the short-term, the bidders operation performance is significantly negative to abnormal returns. 4. In the short-term, the acquirors operation performance is significantly negative to abnormal returns. 5. In the short-term, the bidders and acquirors operation performance influence the abnormal returns. From high to low abnormal returns, first is both bidders and acquirors be underperformance, second is the overperformance bidders acquired the underperformance acquirors, and the last is both bidders and acquirors be overperformance. 6. In the medium-term, the bidders operation performance is significantly positive to abnormal returns. 7. In the medium-term, the acquirors operation performance and abnormal returns is no correlation. 8. In the medium-term, the bidders and acquirors operation performance influence the abnormal returns. From high to low abnormal returns, first is the underperformance bidders acquired the overperformance acquirors, second is the overperformance bidders acquired the under-performance acquirors, third is both bidders and acquirors be underperformance and the last is both bidders and acquirors be overperformance. 9. In the short-term, we find the unrelated acquisition is higher then related acquisition. 10. In the medium-term, we find the related acquisition is higher then unrelated acquisition. 11. Both in the short-term and medium-term, the four diversification strategies abnormal return form high to low is signal business, dominant business, related business, and the last unrelated business.