Market Misvaluation Affects the StockValue by the Acquisition

• Main Authors: Shin-Kai Huang, 黃信凱
• Other Authors: 胡星陽
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/t2b47w

碩士 === 國立臺灣大學 === 財務金融學研究所 === 105 === 　　Chinese outbound M&A have significantly increased in recent years. These deals have aimed to import advanced technology, build brands and increase earnings. This study examines two things. One is the relationship between the difference of acquirers’ PE ratio and targets’ PE ratio and the variation in acquirers'' expected EPS. The other is the difference between acquirers and targets’ valuation and its’ effect on the variation in acquirers’ value per share by the acquisition. 　　Our sample consists of global M&A deals with announcement dates between 2000 and 2016. The empirical results show that the higher positive difference between acquirers’ PE ratio and targets’ PE ratio, the higher probability that acquirers can enhance their EPS. In addition, relative to target, acquirers with higher overvaluation tend to increase their stock values.