The Effect of The Value of Financial Flexibility on M&A Announcement: Difference-in-difference Approach on Taiwanese Listed Acquiring Companies
碩士 === 國立臺北大學 === 國際企業研究所 === 105 === This study aims to examine how the value of financial flexibility (VOFF) of Taiwanese acquiring firms influences their merger and acquisition (M&A) announcement effect. VOFF is defined as “the ability of a firm to access and restructure its financing at a l...
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| Format: | Others |
| Language: | en_US |
| Published: |
2017
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| Online Access: | http://ndltd.ncl.edu.tw/handle/guuagz |
| Summary: | 碩士 === 國立臺北大學 === 國際企業研究所 === 105 === This study aims to examine how the value of financial flexibility (VOFF) of Taiwanese acquiring firms influences their merger and acquisition (M&A) announcement effect. VOFF is defined as “the ability of a firm to access and restructure its financing at a low cost.” Propensity score matching (PSM) and/or Mahalanobis metric matching methods are used to reduce bias and match firms in treatment and control groups. Further, we utilize the difference-in-difference (DiD) approach to distinguish the effect of VOFF between sample groups. The estimation results reveal a significant effect of VOFF on acquiring firms’ M&A announcement effects. Implications are that investors could base their investment strategies on watching out these VOFFs’ variation, and exploit more profits from the M&A event and that business managers could initiate corporate policies regarding VOFFs to escalate the strategic profit model.
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