||The Impact of Merger and Acquisition Wave on Early Movers, Late Movers and Non-responding Rivals
||Institute of International Business
Merger wave is defined as the short period of intensive merger activity with in the industry. Previous literatures have examined the characteristics that influence company to participate merger wave. Ample researches focus on studying the performance between acquiring firms and target firms in merger wave. Some studies compare the performance between early mover and late mover in merger wave. However, little literature shed lights on comparing the performance among early mover, late mover, and non-responding rival firms.
This research focuses on studying the sixth merger wave, and examines the abnormal returns among early mover, late mover, and non-responding rival firms in electronic and other electrical equipment and components industry. The results show that non-responding rival firms are significantly negative affected by the M&A announcement. The results also show that, on average, the abnormal returns of acquirers are better than the returns of non-responding rival firms. Besides investigating the returns among early mover, late mover, and non-responding rival firms, this study test for rival firm ‘s characteristics and M&A deal characteristics to check which factor influence non-responding rival firms’ returns in merger wave.
Table of Content---V
List of Tables---VII
Chapter2 Literature review---4
2-1 Competitive Movements---4
2-2 Merger and Acquisition---5
2-2-1 Advantage and Disadvantage of Merger and Acquisition---5
2-2-2 Effect of Merger and Acquisition Wave on Rivals---7
2-2-3 Relationship between Rivals’ Return and Rival’s Characteristics---9
2-2-4 Relationship between Rivals’ Return and Deal Characteristics---11
Chapter3 Sample and Methodology---14
3-1 Data Description---14
3-2-1 Dependent Variables: Abnormal Return---17
3-2-2 Independent Variables---17
3-2-3 Control Variables---19
4-1 Acquirers and Non-responding Rival Firms in M&A Wave---23
4-2 Early Movers and Late Movers in Merger Waves---24
4-3 Factors Influence Non-responding Rival’s CARs in Merger Waves---27
4-3-1 Simple Regression Analysis---27
4-3-2 Multiple Regression Analysis---30
5-1 Managerial Implication---34
5-2 Limitation and Suggestions for Future Research---35
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