A Matching Approach to Operation Performance under Various Types of M&A
| Autor: | Lee, Aihau, 李愛華 |
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| Rok vydání: | 2011 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 99 This study aims to assess pre- and post-M&A operation performance for firms under various types of M&A. First, the SDC dataset is employed to screen pairs of acquiring firms and target firms in Taiwan between 1992 and 2008. Second, the matching approach is applied to find non-M&A firms that have similar firm characteristics with the target firms one year prior to the M&A event. Third, three classes of regression analysis (M&A, international/local M&A, and vertical/horizontal M&A) are conducted to appraise how operation performance in terms of the cumulative abnormal return (CAR), revenue growth (REV), return on equity (ROE), interest coverage ratio (ICR), and Tobin’s Q, is affected one year before M&A, in the M&A year, and three years after M&A. Major findings are as follows. (1) The five measures of performance are not significantly different between the M&A sample and the matched sample, showing appropriateness of the matching approach. (2) The M&A event is positively related with CAR and REV, while it is negatively associated with ROE and Tobin’s Q. (3) The international M&A event is positively related with CAR and negatively associated with ROE and Tobin’s Q, while the local M&A event is positively linked with CAR and REV and negatively connected with Tobin’s Q. (4) The vertical M&A event is positively related with CAR and negatively associated with ROE and Tobin’s Q, while the horizontal M&A event is positively linked with CAR and REV and negatively connected with Tobin’s Q. (5) In general, M&A activity improves operation performance but may lower Tobin’s Q under the agent problem. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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