Abstract
This study examines the post-acquisition performance for the 57 Taiwan companies between 1993 and 1997.We find that when we use cash flow return as a profit measurement, most of the firms perform worse after merger and acquisition (M&A). We use panel data to analyze the excess return of merger and acquisition and most of the firms have negative excess return. Thus, it is inferred that merger and acquisition does generate any synergy effect. We further conduct nonparametric tests to find out the factor of merger and acquisition .We find that when the economy goes up, M&A is not necessarily successful When the economy goes down, it will decrease the probability of a successful M&A. Furthermore, domestic M&A does not take any advantages on M&A, However international M&A does take any disadvantage on M&A with the risk of managing different culture and economy background. The M&A will succeed easier under the condition of good ability to resource integration, but M&A will fail under the poor resource integration ability. If the administrative and selling expenses are controlled well, M&A may not go successful. However,M&A will fail if administrative and selling expenses are not controlled well.