臺灣博碩士論文加值系統

The goal of this study is to extend Rhodes-Kropf, Robinson, Viswanathan (2005) analysis and try to sort these possibilities by examining whether announcement period returns and post-merger stock performance are related to firm-specific misvaluation, sector-wide misvaluation, or long-run fundamental value of bidder and target. We find that high firm-specific error acquirers have more negative announcement returns than low firm-specific error acquirers. High time-sector error acquirers have more negative returns than low time-sector error acquirers. Firm-specific misvaluation, sector-wide misvaluation, and long-run fundamental value of targets do not affect merger and acquisition announcement period returns. For the long-run stock performance we find acquiring firm-specific misvaluation, and industry (market-wide) misvaluation is negatively related to three-year abnormal buy and hold returns. Consistent with Rosen (2006) that bidder stock prices are more likely to reversal in the long run. That means markets are not efficient. We also find that cash acquirers are less overvalued than stock acquires, and cash targets are undervalued relative to stock targets, which is consistent with Rhodes-Kropf, Robinson, and Vishanathan (2005). However, they show that low long-run value firm buy high long-run value target is a puzzle for theories of merger activity, which is inconsistent with our results. We find long-run value-to-book for targets is similar to acquirers, both in cash and stock acquisitions. It seems that high long-run value-to-book acquirers buy high long-run value-to-book targets, during period of 1994-2003.

~Contents~
Ⅰ. Introduction…………………………………………………………………..1
Ⅱ Literature Review
2.1 Theories of the valuation effects of mergers and acquisitions
2.1.1 Neo-classical theory………………………………………………..4
2.1.2 Managerial motivation theory……………………………….........5
2.1.3 Misvaluation theory………………………………………………..6
2.2 The combination returns of mergers and acquisitions
2.2.1 Announcement Returns of mergers and acquisition…………….7
2.2.2 Long-term stock price performance following mergers………...8
2.3 Method of Payment……………………………………………………...9
III. Data and Methodology
3.1 Predictions……………………………………………………………….10
3.2 Sample Selection…………………………………………………………11
3.3 Methodology
3.3.1 Measure Misvaluation……………………………………………..13
3.3.2 Estimation of abnormal returns ………………………………….16
3.3.3 Measurement of long-run abnormal stock-price performance…17
3.3.4 Multiple Regression Analysis……………………………………...18
Ⅳ.Empirical findings
4.1 Market-to-book ratio decompositions and announcement period returns
4.1.1 Merger misvaluation and announcement day returns…………..23
4.1.2 Cross-section Regression of Announcement Day Return ……….25
4.2 Market-to-book ratio decompositions and long-run stock performance
4.2.1 Long-run post-merger stock price performance …………………27
4.2.2 Multivariate analysis ……………………………………………….29
Ⅴ. Summary and Conclusions…………………………………………………...32
References…………………………………………………………………………33

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