Basic Search / Detailed Display

Author: 任莫妍
Monika Szczecina-Jen
Thesis Title: The Performance of Mergers and Acquisitions in the Emerging Capital Market: The Case of Public Acquiring Polish Firms
The Performance of Mergers and Acquisitions in the Emerging Capital Market: The Case of Public Acquiring Polish Firms
Advisor: 謝劍平
Joseph C.P. Shieh
Committee: 劉代洋
Day-Yang Liu
陳俊男
Chun-Nan Chen
Degree: 碩士
Master
Department: 管理學院 - 財務金融研究所
Graduate Institute of Finance
Thesis Publication Year: 2017
Graduation Academic Year: 105
Language: 英文
Pages: 62
Keywords (in Chinese): Mergers & AcquisitionsEvent StudyPoland
Keywords (in other languages): Mergers & Acquisitions, Event Study, Poland
Reference times: Clicks: 318Downloads: 0
Share:
School Collection Retrieve National Library Collection Retrieve Error Report
  • This study analyzes the impact of acquisition announcements on the acquirer’s returns in Polish market in the period of 7 years from 2010 to 2016. Using the event study methodology with market model to obtain expected returns, results reveal significant negative abnormal return upon the acquisition announcement. Cross sectional regression indicates that acquisition motives, method of payment, target status and level of relatedness influence investors’ reaction upon announcement. Lower returns are generated for acquisitions, in which the main driver was expansion and for deals, in which acquired firm was private. The firms offering full cash payment and acquire company that operates in the same economic subsector obtain higher returns. Additionally, based on multifactor regression, cash acquisitions generate higher returns for the acquirer regardless of the acquisition motive, relatedness between two firms and acquired firm status. Finally, the results do not provide evidence that domestic acquisition generate higher returns than Cross-Border transactions


    This study analyzes the impact of acquisition announcements on the acquirer’s returns in Polish market in the period of 7 years from 2010 to 2016. Using the event study methodology with market model to obtain expected returns, results reveal significant negative abnormal return upon the acquisition announcement. Cross sectional regression indicates that acquisition motives, method of payment, target status and level of relatedness influence investors’ reaction upon announcement. Lower returns are generated for acquisitions, in which the main driver was expansion and for deals, in which acquired firm was private. The firms offering full cash payment and acquire company that operates in the same economic subsector obtain higher returns. Additionally, based on multifactor regression, cash acquisitions generate higher returns for the acquirer regardless of the acquisition motive, relatedness between two firms and acquired firm status. Finally, the results do not provide evidence that domestic acquisition generate higher returns than Cross-Border transactions.

    Table of Contents List of Figures List of Tables Abstract 1. Introduction 1.1 Overview of mergers and acquisitions in Poland 1.1.1 Mergers and acquisition in Poland during 1989- 2016 period 1.1.2 Poland against the background of Central and Eastern Europe 2. Related literature review and hypothesis development 2.1 A review of Event Studies applied to Acquisitions 2.1.1 Abnormal Returns for Acquired firms 2.1.2 Abnormal Returns for Acquiring firms 2.2 Value drivers in Mergers and Acquisitions 2.2.1 Acquisition Motives 2.2.2 Acquired firms’ Origin. Cross-Border versus Domestic Acquisitions 2.2.3 Method of Payment. Cash versus Equity offers 2.2.4 The nature of the deal. Related versus Unrelated Acquisitions 2.2.5 Acquired firm Status: Public versus Private firm Acquisitions 3. Methodology and Data 3.1 Methodology 3.2 Data 4. Empirical findings 4.1 Wealth effect of Acquisition Announcement 4.2 Cross Sectional Regression 4.2.1 Transaction Motives and its impact on Acquiring firm’s returns 4.2.2 Domestic versus Cross-Border acquisitions and its impact on Acquiring firm’s returns 4.2.3 Method of payment and its impact on Acquiring firm’s returns 4.2.4 Target ownership Status and its impact on Acquiring firm’s returns 4.2.5 The level of Relatedness between acquired and acquiring firms and its impact on Acquiring firm’s returns 4.3 Multi-factor Regression analysis 5. Conclusions and Limitations References Appendix

    Ang, J., & Kohers, N. (2001). The take-over market for privately held companies: the US experience. Cambridge Journal of Economics 25, 723-748.
    Bącal, G., & Bem, J. (2014). Charakterystyka polskiego rynku fuzji i przejęć oraz perspektywy jego rozwoju. Zeszyty naukowe uniwersytetu szczecińskiego nr 804, 725-737.
    Bhagat, S., Malhotra, S., & Zhu, P. (2011). Emerging country cross-border acquisitions: Characteristics, acquirer returns and cross-sectional detemrinants. Emerging MArket Review 12, 250-271.
    Bradley, M., & Sundaram, A. (2006). Acquisitions and Performance: A Re-Assessment of the Evidence. SSRN Working paper, Duke University.
    Brown, S., & Warner, J. B. (1985). Using Daily Stock Returns. The Case of Event Studies. Journal of Financial Economics, vol. 14, 3-31.
    Campa, J. M., & Hernando, I. (2002). Value Creation in European M&As. Research Paper no. 471, Centro Internacional De Investigacion FInanciera.
    Chan K.C., K. G. (1992). Global financial markets and the risk premium on U.S. equity. Journal of Financial Economics 32, 137-167.
    Chang, S. (1988). Takeovers of Privately Held Targets, Methods of Payments, and Target Returns. The Journal of Finance, Vol. LIII, No.2, 773-784.
    Chari, A., Ouimet, P. P., & Tesar, L. L. (2004). Acquiring Control in Emerging Markets:. Research Seminar in International Economics.
    Child, J., & Rodrigues, S. B. (2005). The Internationalization of Chinese Firms: A Case for Theoretical Extension? Management and Organization Review 1:3, 381-410.
    Choi, J., & Russell, J. S. (2004). Economic gains around mergers and acquisitions in the contruction industry of the United States of America. Canadian Journal of Civil Engineering. Vol. 31, 513-525.
    Comment, R., & Jarrell, G. A. (1995). Corporate focus and stock returns. Journal of Financial Economics 37, 67-87.
    43
    Czerwonka, L. (2010). Wpływ fuzji przedsiębiorstw na ich wartość. Ekonomika i Organizacja Przedsiębiorstwa, nr 4 (723), 31-37.
    Desai, H., & Jain, P. C. (1999). Firm performance and focus: long-run stock market performance following spinoffs. Journal of Financial Economics 54, 75-101.
    Draper, P., & Paudyal, K. (2006). Acquisitions: Private versus Public. European Financial Management, Vol. 12, No. 1, 57–80.
    Eckbo, E. B., & Thorburn, K. S. (2000). Gains to Bidder Firms Revisited: Domestic and Foreigh Acquisitions in Canada. Journal of Financial and Quantitative Analysis, Vol. 35, No. 1, 1-25.
    Eun, C. S., Richard, K., & Scheraga, C. (1996). Cross-border acquisitions and shareholder wealth: Test of synergy and internalization hypotheses. Journal of Banking & Finance 20, 1559-1582.
    Fama, E. F. (1998). Market efficiency, long-term returns, and behavioral finance. Journal of Financial Economics 49, 283-306.
    Fama, E. F., Fisher, L., Jensen, M. C., & Roll, R. (1969). The Adjustment Of Stock Prices To New Information. International Economic Review, Vol. 10, 1-21.
    Frąckowiak, W. (1998). Fuzje i Przejęcia Przedsiębiorstw. Warszawa: Polskie Wydawnictwo Ekonomiczne.
    Fuller, K., Netter, J., & Stegemoller, M. (2002). What do returns to Acquiring Firms Tell Us? Evidence from Firms that Make Many Acquisitions. The Journal of Finance, Vol. LVII, No. 4, 1763- 1793.
    Goergen, M., & Renneboog, L. (2004). Shareholder Wealth Effect of European Domestic and Cross-border Takeover Bids. European Financial Management, Vol 10, No. 1, 9-45.
    Gorynia, M., Nowak, J., & Wolniak, R. (2007). Poland and its Development Path. Eastern European Economics, Vol. 45, No. 2, 52-74.
    Hamza, T. (2009). Determinants of short-term value creation for the bidders: evidence from France. Journal of Management and Governance, Vol.15, 157-186.
    44
    Isa, M., & Lee, S. P. (2011). Method of Payment and Target Status: Annoucement Returns to Acquiring Firms in the Malaysian Market. International Journal of Economics and Finance Vol.3, No. 3, 177-189.
    Ismail, A. (2008). Which acquirers gain more, single or multiple? Recen evidence from the USA market. Global FInance Journal 19, 72-84.
    Kabaciński, B. (2013). Ocena efektów fuzji i przejęć na podstawie analizy nadzwyczajnych stop zwrotu. Zarządzanie i Finanse, 231–242.
    Kang, J.-K. (1993). The international market for corporate control. Mergers and acquisitions os U.S. firms by Japanese firms. Journal Of Financial Economics 34, 345-371.
    Kiymaz, H., & Baker, K. H. (2008). Short-Term Performance, Industry Effects, and Motives: Evidence from Large M&As. Quarterly Journal of Finance and Accounting, Vol. 47, No. 2, 17-44.
    Klimek, A. (2011). Greenfield Foreign DIrect Investment Versus Cross-Border Mergers and Acquisitions. Th Evidence of Multinational Firms from Emerging Countries. Eastern European Economics, Vol. 49, Nr. 6, 60-73.
    Lewandowski, M. (2001). Fuzje i przejęcia na tle tendencji światowych. WIG-Press.
    Linn, S. C., & Switzer, J. A. (2001). Are cash acquisitions associated with better postcombination operating performance than stock acquisitions. Journal of Banking & Finance 25, 1113-1138.
    Lowinski, F., Schiereck, D., & Thomas, T. W. (2004). The Effect of Cross-Border Acquisitions on Shareholder Wealth- Evidence from Switzerland. Review of Quantitive Finance and Accounting 22, 315-330.
    Luo, Y., & Tung, R. L. (2007). International expansion of emerging market enterprises: A springboard perspective. Journal of International Business Studies, 481-498.
    Machała, R. (2007). Przejęcia i fuzje: wpływ na wartość firm. Wrocław: UNIMEX.
    Mantecon, T. (2009). Mitigating risks in cross-border acquisitions. Journal of Banking & Finance 33, 640-651.
    45
    Maquieira, C. P., Megginson, W. L., & Nail, L. (1998). Wealth creation versus wealth redistributions in pure stock-for stock mergers. Journal of Financial Economics 48, 3-33.
    Markides, C. C., & Ittner, C. D. (1994). Shareholder Benefits from Corporate International Diversification: Evidence from U.S. International Acquisitions. Journal of International Business Studies, 343-366.
    Moeller, S. B., Schlingemann, F. P., & Stulz, R. M. (2004). Firm size and the gains from acquisitions. Journal of Financial Economics 73, 2001-228.
    Morck, R., & Yeung, B. (1992). Internalization. An event study test. Journal of International Economics 33, 41-56.
    Myers S. C., M. N. (1984). Corporate financing and investment decisions when firms have Information that Investors do not have. Journal of Financial Economics 13, 187-221.
    Myers, S. C., & Majluf, N. S. (1984). Corporate Financing and Investment DEcisions when Firms have information that investors do not have. Journal of Financial Economics 13, 187-221.
    Rodwell, H. (2011). Emerging Europe: M&A Report 2011. CMS and Deal Watch.
    Rodwell, H., & Parker, I. (2012). Emerging Europe: M&A Report 2012. CMS and DealWatch.
    Rodwell, H., & Petrikic, R. (2013). Emerging Europe: M&A Report 2013/14. CMS and DealWatch.
    Rodwell, H., & Petrikić, R. (2014). Emerging Europe: M&A Report 2014/15. CMS and DealWatch.
    Rodwell, H., & Petrikić, R. (2015). Emerging Europe: M&A Report 2015/16. CMS and DealWatch.
    Roll, R. (1986). The Hubris Hypothesis of Corporate Takeovers. The Journal of Business, Vol. 59, No. 2, Part 1, 197-216.
    Schwert, W. G. (1996). Markup pricing in mergers and acquisitions. JOurnal of Financial Economics 41, 153-192.
    46
    Servaes, H., & Zenner, M. (1994). Taxes and the Returns to Foreign Acquisitions in the United States. Financial Management, Vol. 23, No. 4,, 42-56.
    Seth, A., Song, K. P., & Pettit, R. R. (2002). Value Creation and Destruction in Cross-border Acquisitions: An Empirical Analysis of Foreign Acquisitions of U.S. Firms. Strategic Management Journal 23, 921-940.
    Seth, A., Song, K. P., & Pettit, R. R. (2002). Value Creation and Destruction in Cross-Border Acquisitions: An Empirical Analysis of Foreign Acquisitions of U.S. Firms. Strategic Management Journal, vol. 23, 921-940.
    Shieh, D. J. (2017). Investment Banking and Mergers & Acquisitions.
    Stulz, R. M. (1999). Globalization, Corporate Finance, and the Cost of Capital. Journal of Applied Corporate FInance, 8-25.
    Szyszka, A. (2002). Studium wydarzeń: reakcja inwestorów na publiczne wezwania do sprzedaży akcji. Zarządzanie finansami: klasyczne zasady– nowoczesne metody,. In Zarzecki D., Zarządzanie finansami: klasyczne zasady– nowoczesne metody (p. t.1). Szczecin: Wydawnictwo Naukowe Uniwersytetu Szczecińskiego.
    Travlos, N. G. (1987). Corporate Takeover Bids, Methods of Payment, and Bidding Firms' Stock Returns. The Journal of Finance, Vol. XLII, No. 4, 943-963.
    Trojanowski, G. (2008). Equity block transfers in transition economies: evidence from Poland. Economic Systems, 217-238.
    Walker, M. M. (2000). Corporate Takeovers, Strategic Objectives, and Acquiring- firm Shareholder Wealth. Financial Management Vol. 29, No. 1, 53-66.
    Wong, A., & Cheung, K. Y. (2009). The Effects of Merger and Acquisition Annoucements on the Security Prices of Bidding Firms and Target Firms in Asia. International Journal of conomics and Finance Vol. 1, No. 2,, 274-283.
    Yook, K. C. (2003). Larger Return to Cash Acquisitions: Signaling Effect or Leverage Effect? The Journal of Business, Vol. 76, No. 3, 477-498.
    47
    Zahra S. A., I. R. (2000). International Expansion by New Venture Firms: International Diversity, Mode of Market Entry, Technological Learning, and Performance. The Academy of Management Journal, 925-950.

    無法下載圖示 Full text public date 2022/07/04 (Intranet public)
    Full text public date This full text is not authorized to be published. (Internet public)
    Full text public date This full text is not authorized to be published. (National library)
    QR CODE