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This study uses XPEC as the case to examine whether investors can find the “true” motivation of corporate acquisition by using public information. In particular, this study collects the financial as well as corporate pubic information of XPEC surrending each acquisition over the period from 3/31/2014 to 5/31/2016. Then this study examines the determinants of XPEC’s acquisitions using logisitic regression models and ordinary least squares regression models. It is found that- (1) the acquiror’s business operation and profitability (2) the acquiror’s efficiency of asset usage (especially the content of intangible asset) (3) the notes to the financial statements (4) the change of accountants (5) the change of pledge ratios of directors、the change of stock holding ratios for both directors as well as large shareholders pre-and post-acquisitions- are all important factors for investors to predict whether corporate will use acquisitions as a means to speculate in company stocks.
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