| Summary: | 碩士 === 國立臺灣大學 === 商學研究所 === 96 === In the hypercompetitive global marketplace, business growth by mergers and acquisitions (M&A) has been a widely adapted strategy. M&A thrives not only in developed Western countries but also in emerging markets such as Taiwan and Hong Kong over the past ten years. Acquirers of Hong Kong, as a member of “East Asian Four Tigers” similar to Taiwan, were used to examine the cumulative average abnormal returns (CAR) of M&A as well as the potential determinants of CAR.
The M&A data were collected from SDC database with the sampling period from 1/1/1990 to 12/31/2007. The researc samples are the companies publicly listed in Hong Kong Main Board and Growth Enterprise Market (GEM) which act as the acquirers in the M&A cases with the transaction scale higher than USD 10 million. In total, 551 qualified cases were included in this research. The stock market related information was collected from Datastream database and the CAR was further calculated by the MatLab software program. Two analytical methods are employed in this research. For the investigation on the CAR, the event study serves; for the analysis of the determinants of CAR, the t-test and ANOVA functions.
The research findings confirm the existence of CAR. As to potential determinants, six factors were used and examined: diversification, period announced, region match, relative size of the target, method of payment, and target public status. The findings show that large relative size and M&A cases paid with stock or mix of stock and cash have significantly positive CAR and outperform counterparties. In addition, lower degree of diversification, year announced after 1998, and private or subsidiary targets tend to have significantly positive CARs. As to region match, it shows that local M&A has significantly positive CARs, implying that the post-merger integration issues matter. In sum, our research findings are largely consistent with those of prior Western research, probably because that the stock market of Hong Kong is well developed and similar to the market structure of New York Stock Exchange (NYSE).
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