||The Impact of International Economic Events and Enterprise Internal Factors on M&A Performance in Taiwan's Financial Holding Companies
||Department of Business Administration
European Debt Crisis
Mergers and Acquisitions
As the times change, the financial holding companies had been established in Taiwan for a long time, which made the structure of the domestic financial industry changed significantly and the competition among the industry become more intense. Therefore, many company decided to merge. It prompted the government to face the problem of financial M&A. Government reformed the financial industry and improved relevant laws and regulations of finance.
This study will take the holding companies which have conducted M&A in Taiwan from 2002 to 2012 as research targets and explored the major economic events around the world, such as the Lehman Brothers bankruptcy and the effect of the debt crisis on the operating performance after M&A in these ten years. The resources will be collected from annual financial statements of listed companies, MOPS, and the TEJ Database.
By reviewing previous research, this study selects the following variables. For independent variables, this study adopts Company Size, Leverage and Board of Directors. For dummy variables, this study sets Government Ownership, Bankruptcy of Lehman Brothers and European Debt Crisis as dummy. The multiple regression analysis is applied to exam the relationship between these factors and the M&A performance. The empirical results find out that the four factors: Leverage, Board of Directors, Bankruptcy of Lehman Brothers and European Debt Crisis have significant negative effects on the M&A performance.
Chapter 1 Introduction 01
1.1 Research Backgrounds 01
1.1.1 M&A Development of Financial Holding Companies in Taiwan 01
1.1.2 Mega International Economic Events in Recent Years 02
1.2 Research Scope and Procedure 04
Chapter 2 Literature Review and Discussion 06
2.1 Literature review 06
2.1.1 Merger and Acquisition 06
18.104.22.168 Definitions of Merger and Acquisition 06
22.214.171.124 Management of Merger and Acquisition 07
126.96.36.199 Advantages of Merger and Acquisition 09
188.8.131.52 Disadvantages of Merger and Acquisition 09
2.1.2 Measure of Operating Performance 10
2.1.3 Merger and Acquisition and Operating Performance in Global Financial Industry 11
2.2 Possible Research Direction 15
Chapter 3 Research Methods and Models 18
3.1 Data Sources and Sample Selection 18
3.2 Variable Definition and Measurement 19
3.2.1 Definition of Dependent Variable 19
3.2.2 Definition of Independent Variable 20
3.2.3 Definition of Dummy Variable 21
3.3 Research Model 24
Chapter 4 Research Results 26
4.1 Summary of the Data 26
4.2 Test of Ordinary Least Square (OLS) 27
4.3 Nested Hypothesis Test 33
4.4 Modified Model 34
Chapter 5 Conclusion and Recommendation 36
5.1 Research Conclusion 36
5.1.1 The Relationship between Leverage and M&A Performance 37
5.1.2 The Relationship between Board of Directors and M&A Performance 38
5.1.3 The Relationship between Bankruptcy of Lehman Brothers and M&A Performance 38
5.1.4 The Relationship between European Debt Crisis and M&A Performance 38
5.2 Research Suggestion 39
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