The Impact of Firm Leverage on Firm Performance in M&As：The Comparison between Family Firms and Non-Family Firms in Taiwan

• Main Authors: GUO, WAN-YUN, 郭宛畇
• Other Authors: CHUANG, KAI-SHI
• Format: Others
• Language: zh-TW
• Published: 2019
• Online Access: http://ndltd.ncl.edu.tw/handle/r44h84

碩士 === 東海大學 === 財務金融學系 === 107 === This study is to explore the impact of leverage ratio of family and non-family firms on mergers and acquisitions performance. Using event-study methodologies with 940 mergers and acquisitions samples in Taiwan from January 2000 to December 2017. Firstly, we find that leverage deficit around mergers is significantly positively correlated with the mergers and acquisitions abnormal returns, on the average, family firms have underleverage, and non-family firms have over-leverage. Second, we investigate that leverage deficit affects mergers and acquisitions abnormal returns, results show that leverage deficit will positively affect short-term cumulative abnormal returns, while in the long run, leverage deficit will negatively affect cumulative abnormal returns. Using financial variables, corporate governance variables and merger and acquisition variables. We find that leverage deficit has a significant positive impact on cumulative abnormal returns during the short-term announcement date of mergers and acquisitions, Finally, we explore whether the family controls and leverage deficit affect abnormal returns. The results show that when the family controls is between 40% and 50%, there is a positive that leverage deficit has a significant positive impact on cumulative abnormal returns.