An Empirical Analysis On The Effects Of M&A Between The Merging Firms And The Merged Firms

  • Kim, Dong-Hwan (School of Business and Economics, Hoseo University)
  • Published : 2003.12.01


In this study. we empirically compared and investigated the impacts and effects of M&A between the merging firms and the merged firms during the period from 1990 to 1997 which the developed countries' market principles were adopted and more autonomous and competitive M&A market were activated. For this purpose, this paper has set hypothesis and tested by analyzing those AAR, and CARs employing both market model and market adjusted model. The empirical results revealed in this research show that the CAR is more positive for merged firms than merging firms which are contrast with results of previous studies researched in 1980s.


synergy effects;market model;market adjusted model;CAR;t-value;the merging and merged firms.