o Time : September 14, Friday 14:00 ~ 15:30 p.m.

o Venue : 9705(The 7th floor seminar room)


Motives for Mergers and Acquisitions under Turbulent and Liquidity - Scarce Environment: Learning from Korean Cases


Abstract

This paper attempts an explanation of shareholder wealth creation for bidders and targets in terms of synergy factors under turbulent and liquidity-scarce environment, in which Korean mergers and acquisitions have experienced during 1996-2006. While extant empirical literature documents based upon the US mergers and acquisitions that target firms'' shareholders gain substantially whereas those of bidding firms do not, the findings indicate that in contrast in the case of Korean mergers and acquisitions the shareholders of targets do not gain and at worst lose and that those of bidders gain. The results also suggest that a motive for mergers and acquisitions under turbulent and liquidity-scarce environment could be associated with successful firms'' growth strategy into related business utilizing their rich cash-base in acquiring available good targets at cheaper premium.