證券去來法 改政과 企業合倂에 미치는 影響
(The) Effects of the amendments of "Securities and Exchange Act" on the M&A
증권거래법 기업합병 기업경영;
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The purpose of this study is to examine M&A effects of the merging firms in Korea. Especially we analyze the announcement effects and long term effects after M&A. First, we analyzed the effects of M&A announcement and the effects of the amendments of "Securities and Exchange Act" by comparing before and after the amendment of Act. We divided the test period into two parts. The first period is from January 1, 1992(the liberalization of capital) to April 1, 1998(the amendment of "Securities and Exchange Act"). The second period is from April 1, 1998 to December 31, 2002. We selected 60 companies and analyzed by empirical test with using Korean Stock Market data and financial date through event-study. The results of this study are summarized as followed. The M&A firms turned out to gain the abnormal returns during the entire periods. The cumulative average abnormal returns of M&A firms was 1.38%(market adjusted model) or 5.37%(industry-adjusted model) higher after the 1998 amendment of Act than before. The differences of performance of M&A were significant also in case of the related M&A, vertical or horizontal M&A, M&A in booms. In regression analysis, the 1998 amendments of Act was the significant factor to explain the cumulative abnormal returns. Second, we analyzed the long term effects after M&A. The samples of firms which controlled other factors except M&A were selected and the differences of the performance between merging firms and controlled ones were analyzed based on event-study by using stock price data and financial data. The empirical findings of this second study can be summarized as follows. The model using controlled firms shows statistically significant positive excessive profits until the 6 months after merger completion but after the 6 months shows negative excessive profits. It is difficult to insist that the middle and long term effects in merging firms exist. But in the analysis on itemized samples, the higher M&A ratio is, the better stockholder's profit is. So the hypothesis of undervaluation is supported. And the low effects of M&A between affiliated corporations show that the problems of agency and free cash exist in Korea. Total debt ratios in merging firms were reduced by about 53.93%, contrary to the hypothesis of financial synergy. Profitability, leverage and activity show that the financial performance of merging firm has been improved.