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Determinants of Stock for Stock Exchange Ratio for Taiwan Financial Holding Companies
Stock for stock exchange ratio;Financial factors;Non-financial factors
|Issue Date:||2017-11-15 15:58:16 (UTC+8)|
Following the promulgation of the Financial Institutions Merger Act and Financial Holding Company Act in Taiwan, the M&A activities in the financial industry have surged over the last few years. Since the mergers for Taiwan financial holding companies are implemented through stock for stock exchange, the determinants of exchange ratio between acquiring and target companies, not being fully disclosed to the public, have given rise to much controversy. Consequently, the shareholders and the investors have difficulties in protecting their own interests. We investigate the possible factors affecting the exchange ratios from both the financial and non-financial perspectives. Our regression results suggest that five factors have significantly positive effects on the exchange ratio. These five factors including two financial and three non-financial factors are ROA, book value per share, average employees' ages, the CPA firms, and the educational background of chairman and CEO, respectively. In addition, the intercepts are not statistically significant in our regressions, implying that both acquiring and target companies do not pay any premiums/or discounts after incorporating the impact of the financial and non-financial factors.
|Relation:||會計評論, 41, 1-32|
|Appears in Collections:||[會計評論] 期刊論文|
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