Acquirers’ Life Cycle and Announcement Effect of Takeovers

• Main Authors: SHI,WEI-MIN, 施微敏
• Other Authors: CHANG,YUNG-HO
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/hj8xzq

碩士 === 東海大學 === 財務金融學系 === 107 === This paper mainly investigates whether the life cycle has an impact on the announcement effect of acquirers. This paper uses the stock samples of Taiwan from 2009 to 2017. Using the research methods of Anthony and Ramesh (1992) and Bens, Nagar, and Wong (2002), I classify the acquirers in Taiwan by their life cycles: growth, maturity, and decline stages. Then I examine the abnormal returns by using the event study with the market model, and I further investigate the results separately by acquirers’ industry and sizes. Results show that acquirers have positive announcement effect of takeovers at each stage of the life cycle. Divided the samples by industry, it is found that the cumulative abnormal returns of the electronics acquirers are higher than those of the non-electronic samples, especially at the maturity stage. Divided the sample by size, it is found that whether the sample divided by capital or market value, the small companies have better cumulative abnormal returns than do big companies, and it confirms the size effect. Besides, as the life cycle changes, the cumulative abnormal returns of small companies changed from small to large. Finally, using sign test, I find that the declining electronics and the growing small companies report significant negative abnormal returns on the day before the announcements.