Pre-Evaluating the Technical Efficiency Gains from Potential Mergers and Acquisitions in the IC Design Industry
Ying Li (),
Yung-Ho Chiu (),
Tai-Yu Lin () and
Tzu-Han Chang ()
Additional contact information
Ying Li: Business School, Sichuan University, Wangjiang Road No. 29, Chengdu, 610064, P. R. China
Tai-Yu Lin: #x2021;Department of Business Administration, National Cheng Kung University, No. 1, University Road, Tainan City 701, Taiwan
Tzu-Han Chang: #x2020;Department of Economics, Soochow University, 56, Kueiyang St., Sec. 1, Taipei 10048, Taiwan, R.O.C.
International Journal of Information Technology & Decision Making (IJITDM), 2020, vol. 19, issue 02, 525-559
Increased global competition has led to a slowdown in Taiwan’s domestic semiconductor industry growth, which has resulted in many semiconductor companies reducing their investments and or seeking mergers and acquisitions (M & As) to increase market power, expand their business territories or increase their competitive edge. However, as there is general uncertainty regarding the efficiencies to be gained from these M & As, there has been an increase in M & A supervision. While past research has explored company operations and management efficiency after mergers, there has been less focus on potential mergers. Therefore, this study used a resample slacks-based measure (RSBM) and merger potential gains models to evaluate potential merger efficiency gains. Data on 29 Taiwanese-listed integrated circuit (IC) design industry firms were collected to evaluate the efficiency of potential M & As, from which it was found that the potential M & As efficiencies had positive and negative values, indicating that efficiency gains were not guaranteed. A positive value was found for a potential M & A between MTK & NOVATEK and MTK & DAVICOM, which meant that a potential M & A would increase operating efficiencies and reduce costs.
Keywords: DEA; IC design industry; efficiency; merger; merger potential gains (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wsi:ijitdm:v:19:y:2020:i:02:n:s021962202050008x
Ordering information: This journal article can be ordered from
Access Statistics for this article
International Journal of Information Technology & Decision Making (IJITDM) is currently edited by Yong Shi
More articles in International Journal of Information Technology & Decision Making (IJITDM) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().