並列摘要
Using M&A events from Taiwan’s companies in 2002-2011, this paper examines the impacts of related mergers on acquiring firm. Results did not suggest related acquirers benefit more than unrelated acquirers in the growth of performance and productivity. But in the phase of profitability, related mergers sure bring acquiring firm higher ROA and ROE than unrelated mergers. In the aspect of short-term stock price effect, there exists an positive and significant abnormal returns before the day in which acquiring firm announces and reflects no significant effects on the announcement date of merger, indicating that the M&A news always disclose ahead. However, the results of event study shows that merger type did not have a significant effect on the CAAR, showing that the market won’t give an higher appreciation whether the acquirer involves in related merger.