The Analysis of Relationship between Market Reactions and Long Term Performance on Acquisition

Tongam Sihol Nababan
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Abstract

This paper is the study of the research that gives attention to the activities of acquisitions made by firms acquirer (acquirer). The main purpose of this study was to see how the reaction of the market (market reaction) will provide guidance on the picture of the performance of the acquirer firms in the long term. In this study we used 39 acquirers who has made acquisitions in the period between 1991 to 1998. This study applies event study method using the market model to calculate abnormal return. The hypothesis test used was the One Sample T-test, the Multiple Regressions, Wilcoxon Signed-Rank Test and Manova Test. Results of hypothesis testing showed that the acquirer receives a significant negative abnormal return along the date of acquisition. This indicates that the acquisition of events produce a lower return than predicted return is predicted by the shareholders of the acquirer. This study indicated several factors that affect the abnormal return as: financial synergy, size of the acquirer, managerial efficiency, growth of the acquirer, and business relatedness. Results of testing hypotheses against against these factors indicate that none of those variables that provide significant value. This means that the motives of the acquisition is not a motivation for acquirers to engage in activities acquisition. To assess the performance of companies acquirer in the long term, use a proxy such as: ROA, ROE, OPM. The test results showed that overall there was no significant difference between performance before and after the acquisition. This means that most acquirer firms are generally not able integrate acquirer gains against long-term performance.
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市场反应与并购长期绩效的关系分析
本文是对企业收购方(收购方)进行收购活动的研究。本研究的主要目的是了解市场的反应(市场反应)将如何对收购公司的长期表现提供指导。在这项研究中,我们使用了39个在1991年至1998年期间进行收购的收购方。本研究运用事件研究法,运用市场模型计算异常收益。使用的假设检验是单样本t检验、多元回归检验、Wilcoxon sign - rank检验和方差检验。假设检验的结果表明,收购方在收购日期获得显著的负异常回报。这表明收购事件产生的收益低于收购方股东预测的收益。本研究指出影响异常回报的因素有:财务协同效应、收购方规模、管理效率、收购方成长性和业务关联性。对这些因素进行假设检验的结果表明,这些变量都没有提供显著的价值。这意味着收购动机不是收购方从事收购活动的动机。为了评估公司收购方的长期表现,使用诸如:ROA, ROE, OPM等代理。测试结果表明,总体而言,习得前后的表现没有显著差异。这意味着大多数收购公司通常无法将收购收益与长期业绩相结合。
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