Determinants of Taiwan Financial Institutions Performance During Announcement Period

• Main Authors: WU,YUAN-YI, 吳願意
• Other Authors: Wang, C. Edward
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/26746191192765965733

碩士 === 國立臺北大學 === 國際財務金融碩士在職專班 === 104 === As the supervision in banking of Taiwan government was loosen, various financial institutions trended to apply cross-industry business by acquisitions in the way of funding business holding company since 2001. The first financial revolution which followed the“Two-Five-Eight Financial Reform Program” presented in 2002, was intend to reduce the risk of financial system and enhance the strength of financial business with the core to “Abolishing the Harmful”. In 2004, the second revolution which appeared for the appeal to “Promoting the Beneficial”, chasing the goal that promote the globally competition of financial industry in our country. In two years, a new financial integration policy was applied, in order to enlarge the scale and dimensions in financial business, as well as to consolidate the acquisitions competition oversea. As the result of such revolutions, the cross-industry business in our country’s’ financial system was fully developed. The underlying objective of this research is to project the acquisition announcement date cumulative abnormal return of domestic public companies by using event studies. Samples we are using here are mergers and acquisition cases happened between year 1996 and 2015. The result shows that if the acquisition news were leaked before the announcement date, it will have positive impact on the acquired stock price in the short time after the acquisition. After doing the regression analysis on stock announcement date cumulative abnormal return with six factors got from reference, which might correlate to the acquisition announcement date CAR. The empirical result shows that this return has connection with payment method, industrial relevance between two companies, company past performance and agency problem. However, there is significant negative correlation between the relative size and the performance of the company during the announcement period of the acquisition.