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THE IMPACT OF M&As ON SHAREHOLDER WEALTH: EVIDENCE FROM TAIWANESE CORPORATIONS
Author(s) -
TSUNGMING YEH,
HOSHINO YASUO
Publication year - 2002
Publication title -
the developing economies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.305
H-Index - 30
eISSN - 1746-1049
pISSN - 0012-1533
DOI - 10.1111/j.1746-1049.2002.tb00926.x
Subject(s) - shareholder , monetary economics , business , financial system , economics , finance , corporate governance
This study, using forty‐six M&A events in Taiwan between 1987 and 1998, investigates the effects of M&As on shareholder wealth. The shareholders of the acquiring firms gain modestly positive abnormal returns around the announcement dates. We also distinguish M&As of different purposes, finding that M&As for technology‐acquiring purposes are most favored by the market, while vertical M&As are detrimental to shareholder wealth.