A study of mergers and acquisitions premium in Taiwan stock market
Date Issued
2005
Date
2005
Author(s)
Fan, Yu-Shan
DOI
en-US
Abstract
This paper studies the relation between the premiums in mergers and acquisitions bids involving listed firms from 1992 to 2004 and the pre-announcement stock price runups. Furthermore, I also analyze the determinants that influence the premiums most. The evidence shows that the pre-bid runup and post-bid markup increase in the target’s stock price are positively correlated. With almost no substitution between the runup and the markup, the runup is an added cost to the bidder. This result has important implication for assessing the costs of insider’s trading. I also find out that the targets whose insider’s shareholding of the equity structure is higher than others tend to get significantly higher premiums.
Subjects
購併
溢價
事件研究法
市場模型
價格加成假說
內部人交易
多變量分析
mergers and acquisition
premiums
event study
market model
markup pricing hypothesis
multivariate analysis
Type
thesis
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