| Summary: | 碩士 === 國立中興大學 === 財務金融學系所 === 107 === This study investigates the repeated mergers and acquisitions in Taiwan. Using all mergers and acquisitions events from 1990 to 2017 as sample, I find that the cumulative abnormal return from repeated mergers and acquisitions is larger than the first transaction, and this difference shrinks as the number of transactions increase, suggesting that overconfidence behavior or agency cost might exist in the Taiwan’s market. In addition, I find that the difference in return between the first and second deal is weakened when the target firm is unlisted, suggesting that investors believe that repeated transactions might result from overconfidence behavior and tend to revise their expectation when the level of information asymmetry is great. However, I do not find that the difference in return between the first and the second deal to weaken using family firm indicator as a proxy of overconfidence.
|
|---|
