The Effects of Mergers and Acquisitions on Taiwanese Corporations

Tsung-Ming Yeh and Yasuo Hoshino
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Tsung-Ming Yeh: The Doctoral Program in Policy and Planning Sciences, University of Tsukuba, Tsukuba, Japan
Yasuo Hoshino: Institute of Policy and Planning Sciences, University of Tsukuba, Tsukuba, Japan

Review of Pacific Basin Financial Markets and Policies (RPBFMP), 2000, vol. 03, issue 02, 183-199

Abstract: This paper investigated the impact of M&As on both the acquiring firms' stock prices and corporate performance by using evidence from 20 Taiwanese corporations. Our data suggest that the accounting performance of Taiwanese acquiring firms failed to meet the stock market's expectation of future improvements in the operations of the acquiring firms. The stock market reacted in favor of the announcements of M&As, however, there is a downward change in the acquiring firms' profitability from premerger to postmerger periods. However we do not find any significant correlation between stock returns and the change in accounting performance, which is different from some previous studies.

JEL-codes: G1 G2 G3 (search for similar items in EconPapers)
Date: 2000
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Citations: View citations in EconPapers (9)

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DOI: 10.1142/S0219091500000108

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