| Summary: | 碩士 === 國立臺北大學 === 企業管理學系 === 100 === Media coverage do have influence on announcement effect of company's major events including Initial Public Offering(IPO) and Stock Repurchase have been proved in prior literature. However, no studies take into account the impact of the media coverage on M & A events. Therefore, the main purpose of this study is to explore the impact of media coverage on the announcement effects of mergers and acquisitions events.
In addition, it is widely recognized in the literature (e.g., Asquith, Bruner and Mullins, 1983; Travlos, 1987; Loughran and Vijh, 1997; Blackburn, scholars in the Dark and Hanson, 1997) that the positive effect of M&A announcement in cash payment is higher than those in stock payment and therefore we infer that M&A in cash payment is a stronger financial signal for investors than those in stock payment. So, we further examine the relationship between M&A announcement effect in different kinds of payment and the degree of media attention.
According to the empirical evidence, we find that the higher degree of media attention the lower M & A announcement effects for the acquiring company while we do not distinguish the types of the payment. Besides, we find that the discrepancy of M & A announcement effects between cash payment and stock payment under high degree of media attention is smaller than those under low degree of media attention while we distinguish the types of the payment. These findings are consistent with the results reported by Fang and Peress (2009) and the 'Investor Recognition Hypothesis' reported by Merton (1987).
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