The Effects of Mergers and Acquisitions on Taiwanese Corporations

2000 ◽  
Vol 03 (02) ◽  
pp. 183-199 ◽  
Author(s):  
Tsung-Ming Yeh ◽  
Yasuo Hoshino
Keyword(s):  
Stock Market ◽  
Mergers And Acquisitions ◽  
Stock Returns ◽  
Stock Prices ◽  
Corporate Performance ◽  
Accounting Performance ◽  
Acquiring Firms ◽  
The Impact

This paper investigated the impact of M&As on both the acquiring firms' stock prices and corporate performance by using evidence from 20 Taiwanese corporations. Our data suggest that the accounting performance of Taiwanese acquiring firms failed to meet the stock market's expectation of future improvements in the operations of the acquiring firms. The stock market reacted in favor of the announcements of M&As, however, there is a downward change in the acquiring firms' profitability from premerger to postmerger periods. However we do not find any significant correlation between stock returns and the change in accounting performance, which is different from some previous studies.

scholarly journals The Impact of Foreigners’ Trades on Equity Prices: Evidence from Macedonian Stock Exchange

2020 ◽  
Vol 15 (1) ◽  
pp. 56-65
Author(s):  
Julijana Angelovska
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Stock Prices ◽  
Capital Inflows ◽  
General Belief ◽  
Price Pressure ◽  
Domestic Capital ◽  
Base Broadening ◽  
Foreign Capital Inflows ◽  
The Impact

AbstractEmerging countries’ economies are dependent on foreign capital inflows. For policy makers and researchers of particular interest is to understand the nature of these flows and their impact on the domestic capital market. The first significant foreign inflows entered the Macedonian Stock Market at the end of 2004, and stock prices were increased. It was general belief among the investors that foreigners are driving the prices on the Macedonian Stock Market. This study examines the influence of foreign investors’ trades on stock returns in Macedonia using base broadening and price pressure hypotheses. Strong evidence consistent with the base-broadening hypothesis shows that 1% of monthly net inflows as a percentage of last month market capitalization is connected with 7% rise in monthly returns on the Macedonian stock market. The findings do not support the price pressure hypothesis, so the rise in the prices is permanent.

scholarly journals NOISE TRADER RISK: EVIDENCE FROM VIETNAM STOCK MARKET

2019 ◽  
Vol 128 (5C) ◽  
pp. 5
Author(s):  
Phan Khoa Cuong ◽  
Tran Thi Bich Ngoc ◽  
Bui Thanh Cong ◽  
Vo Thi Quynh Chau
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Stock Prices ◽  
Positive Impact ◽  
Moving Average ◽  
Noise Trader ◽  
Daily Stock Returns ◽  
Fundamental Value ◽  
The Impact ◽  
Daily Returns

<p><strong>Abstract: </strong>This paper investigates the existence of noise trader risk in Vietnam’s stock market and its effect on the daily returns of stock prices. The methodologies contain the estimation of GARCH (1,1) model to filter the residuals using the moving average method to calculate the impact of information traders. Noise trader risk or the risk that is caused by noise traders is derived by subtracting the residuals by the rational traders’ impact. We find that the noise trader risk does exist in Vietnam’s stock market and its impact on daily returns of stocks is unpredictable. Meanwhile, we find a positive impact of information traders on the stock returns. It increases the daily stock returns, and in turn, helps the market to correct itself because the stock prices move back to its fundamental value.</p><p><strong>Keywords</strong>: noise trader risk, GARCH (1,1), Vietnam’s stock market</p>

scholarly journals Impact of M&A Announcement on Stock Returns of Acquirer Companies: New Evidence from Indian Stock Market

2017 ◽  
Vol 3 (1) ◽  
pp. 86
Author(s):  
Richa Vij
Keyword(s):  
Stock Market ◽  
Mergers And Acquisitions ◽  
Stock Returns ◽  
Capital Market ◽  
Stock Return ◽  
Strong Form ◽  
Business Objectives ◽  
Indian Stock Market ◽  
The Impact ◽  
New Evidence

Mergers and Acquisitions (M&As) are often used as preferred tools of corporate structuring to serve a variety of business objectives and add value for the shareholders. Earlier studies have triggered a number of questions regarding the impact of M&As for the shareholders of acquiring companies. This paper focuses on the M&A among Indian companies and the response of the Indian capital market to such attempts as reflected in the changes in the stock return for different window periods close the M&A announcement. The findings of the present study suggest that there is significant impact of M&A announcement on stock returns for almost half of the sample acquirer companies. The study offers evidence in support of the contention that Indian stock market is not efficient in the semi-strong form with respect to M&A announcement information for acquirer companies and emphasizes that  investment analyst cannot ignore the information regarding the M&A deals.

The Association between Accounting Earnings, Dividends, Stock Prices and Stock Returns: Value Relevance of Accounting Standards in the Tunisian Stock Market

2017 ◽  
Vol 7 (1) ◽  
Author(s):  
Ahmed Bouteska ◽  
Boutheina Regaieg
Keyword(s):  
Stock Market ◽  
Interest Rates ◽  
Stock Returns ◽  
Stock Prices ◽  
Value Relevance ◽  
Explanatory Power ◽  
Investment Decisions ◽  
Accounting Earnings ◽  
Stock Market Returns ◽  
The Impact

This present study aims to examine the relationship between accounting earnings, dividends, stock prices and stock returns for companies listed at the Tunisian stock exchange. Using panel data obtained from the annual reports and financial statements of 57 Tunisian companies over the period 2005-2015, we show the existence of an earning-dividend-return significant positive relation by applying four models developed from Easton and Harris (1991), Frino and Tibbits (1992) and Kothari and Zimmerman (1995).. The empirical results indicate a significant value relevance of accounting earnings and dividends reported by Tunisian companies under the standards generally accepted in Tunisia. Particularly, it appears from our main findings in regressions the relative explanatory power of above variables on stock market returns which clarifies the important proportions of variations of stock returns in Tunisia. The findings from the study also reveal that shareholders pay a special attention to the impact of dividend and dividend yield on stock returns. Moreover, investors should consider informative earnings numbers as investment criteria as well as many other factors for example interest rates and industry performance affecting stock returns when it comes to make investment decisions. Based on these results and due to the importance of accounting earnings in investment decisions we recommend that there is need for investors to carefully use financial advisory information that financial analysts provide to them in order to determine what the correct and comparable earnings per share (EPS) or dividend per share (DPS) of each company.

scholarly journals THE IMPACT OF RESUMPTION OF FORMER TOP EXECUTIVES ON STOCK PRICES: AN EVENT STUDY APPROACH

2013 ◽  
Vol 14 (2) ◽  
pp. 292-302 ◽  
Author(s):  
Tai-Ning Yang
Keyword(s):  
Stock Market ◽  
Event Study ◽  
Stock Prices ◽  
Corporate Performance ◽  
Market Model ◽  
Top Executives ◽  
Study Approach ◽  
Practical Guidelines ◽  
Managerial Experience ◽  
The Impact

This study explored the impact of resumption of former top executives on stock prices based on market model for the listed corporations in Taiwan stock market. Top executives nowadays confront great challenges in acquiring new corporate accounts to meet agreed targets and drive rapid, profitable growth. Accordingly, corporations commonly decide to reinstate former top executives since their managerial experience is expected to improve corporate performance. The aim of this study is to provide practical guidelines for companies that are considering such decisions and favorable information that can help investors to adjust their portfolios in response to such potential decisions.

scholarly journals Financial Scandal and China’s Stock Market Couplings

2018 ◽  
Vol 04 ◽  
pp. 113
Author(s):  
Liu Liu ◽  
Ning Zeng ◽  
◽  
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Insider Trading ◽  
Stock Prices ◽  
Relevant Information ◽  
Share Price ◽  
Structural Vector Autoregression ◽  
Vector Autoregression Model ◽  
Available Information ◽  
The Impact

This paper examines the impact of CITIC Securities (CITICS)’ insider trading on five state-owned banks’ stock returns in China. We first conduct a structural Vector Autoregression model together with Granger causality to investigate the response of banks’ returns to that of CITICS. Next an Exponential Generalised AutoRegressive Conditional Heteroskedasticity process is employed to capture the volatilities of stock returns, and therefore investigate the response of five banks to that of CITICS. The dataset for three months after the scandal is obtained and the estimation results show some significant coupling effects do exist within stock returns of financial sector in stock market as well as within their volatilities. The core findings in this study suggest that Chinese stock prices could reflect all relevant information available from past changes in the share price as well as publicly available information. To some extent, China’s stock market is semi-strong efficiency, implying the quality of investors’ rationality and providing regulators with empirical evidence to policy-making.

scholarly journals How News affects Stock Prices of Olympics and FIFA host countries

2021 ◽  
Author(s):  
Alanoud Al-Maadid ◽  
Nicola Spagnolo ◽  
Omer Akbar
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Stock Returns ◽  
Stock Prices ◽  
Host Countries ◽  
Sports Industry ◽  
Sports Events ◽  
Stock Market Performance ◽  
Mega Sports Events ◽  
The Impact

As the sports industry continues to grow, mega sports events can have a significant impact on the financial markets. Stock market performance is influenced by sports-related news, however, very few studies have been undertaken to examine the impact of sports events on the stock market. Results of econometric analysis, controlling for potential endogeneity of the stock returns variables, show that news index has a positive and significant impact on stock returns. The results also show that interest rate and oil prices have a positive and significant impact on stock returns, whereas, VIX index has a negative and significant impact on stock returns.

scholarly journals Building stock market resilience through digital transformation: using Google trends to analyze the impact of COVID-19 pandemic

2020 ◽  
Vol 14 (1) ◽  
Author(s):  
Ding Ding ◽  
Chong Guan ◽  
Calvin M. L. Chan ◽  
Wenting Liu
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Digital Transformation ◽  
Google Trends ◽  
Building Stock ◽  
Market Sentiment ◽  
Price Performance ◽  
Novel Coronavirus ◽  
The Impact

Abstract As the 2019 novel coronavirus disease (COVID-19) pandemic rages globally, its impact has been felt in the stock markets around the world. Amidst the gloomy economic outlook, certain sectors seem to have survived better than others. This paper aims to investigate the sectors that have performed better even as market sentiment is affected by the pandemic. The daily closing stock prices of a total usable sample of 1,567 firms from 37 sectors are first analyzed using a combination of hierarchical clustering and shape-based distance (SBD) measures. Market sentiment is modeled from Google Trends on the COVID-19 pandemic. This is then analyzed against the time series of daily closing stock prices using augmented vector autoregression (VAR). The empirical results indicate that market sentiment towards the pandemic has significant effects on the stock prices of the sectors. Particularly, the stock price performance across sectors is differentiated by the level of the digital transformation of sectors, with those that are most digitally transformed, showing resilience towards negative market sentiment on the pandemic. This study contributes to the existing literature by incorporating search trends to analyze market sentiment, and by showing that digital transformation moderated the stock market resilience of firms against concern over the COVID-19 outbreak.

scholarly journals The Impact of Mergers and Acquisitions and Sustainability on Company Performance in the Pharmaceutical Sector

2021 ◽  
Vol 13 (12) ◽  
pp. 6525
Author(s):  
Diana Marieta Mihaiu ◽  
Radu-Alexandru Șerban ◽  
Alin Opreana ◽  
Mihai Țichindelean ◽  
Vasile Brătian ◽  
...  
Keyword(s):  
Stock Market ◽  
Mergers And Acquisitions ◽  
Performance Improvement ◽  
Score Function ◽  
Pharmaceutical Companies ◽  
Company Performance ◽  
Direct Impact ◽  
Pharmaceutical Sector ◽  
Financial Measures ◽  
The Impact

The primary goal of this study was to determine the impact of mergers and acquisitions (M&A) and the environmental, social, and governance (ESG) sustainability scores of companies. In this regard, efforts to measure and analyze the evolution of a company’s performance, taking into account financial and non-financial measures using a score function, are adapted to the pharmaceutical sector. The sample consisted of 100 leading pharmaceutical companies, ranked by stock market capitalization, who registered 30% (n = 492) of the total M&A transactions over the study period (2010–2020). There was a direct and positive link between the M&A process and the evolution of company performance. The ESG score, as an indicator for measuring sustainability, has a positive and direct impact on company performance, indicating that a high ESG score determines an increase in company performance. A similar impact is identified for companies involved in M&A processes, meaning that companies in the pharmaceutical sector tend to register a performance improvement.

scholarly journals The Impact of COVID-19 on the Stock Price of Socially Responsible Enterprises: An Empirical Study in Taiwan Stock Market

2021 ◽  
Vol 18 (4) ◽  
pp. 1398
Author(s):  
Kuo-Jung Lee ◽  
Su-Lien Lu
Keyword(s):  
Stock Market ◽  
Stock Prices ◽  
Stock Price ◽  
Abnormal Returns ◽  
Recovery Phase ◽  
Socially Responsible ◽  
Cumulative Impact ◽  
Study Approach ◽  
Price Performance ◽  
The Impact

This study examines the impact of the COVID-19 outbreak on the Taiwan stock market and investigates whether companies with a commitment to corporate social responsibility (CSR) were less affected. This study uses a selection of companies provided by CommonWealth magazine to classify the listed companies in Taiwan as CSR and non-CSR companies. The event study approach is applied to examine the change in the stock prices of CSR companies after the first COVID-19 outbreak in Taiwan. The empirical results indicate that the stock prices of all companies generated significantly negative abnormal returns and negative cumulative abnormal returns after the outbreak. Compared with all companies and with non-CSR companies, CSR companies were less affected by the outbreak; their stock prices were relatively resistant to the fall and they recovered faster. In addition, the cumulative impact of the COVID-19 on the stock prices of CSR companies is smaller than that of non-CSR companies on both short- and long-term bases. However, the stock price performance of non-CSR companies was not weaker than that of CSR companies during times when the impact of the pandemic was lower or during the price recovery phase.

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