| Summary: | 碩士 === 國立臺北大學 === 國際企業研究所 === 104 === In this study, we examine the impact of the value of financial flexibility（VOFF）, the ability of a firm to access and restructure its financing at a low cost, on merger and acquisition (M&A) announcement. Using data gathered from SDC Platinum database which engaged in M&A activities, we conducted on 116 acquiring firms in Taiwan with the year from 2007 to 2011. We use pooled regression model to calculate the value of financial flexibility, then OLS regressions are used to predict the effect of value of financial flexibility on the acquirer firms’ cumulative abnormal returns (CARs). Empirical results show that during financial crisis, there is a negative effect of the value of financial flexibility on M&A performance. High tech M&A are more value-enhancing than non-high tech M&A. Hence, management could gain better understanding of the value of financial flexibility when they striking M&A and during financial crisis is not improper to pursue performance-enhancing strategy.
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