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The Influence of Merger and Acquisition Activities on Corporate Performance in the Taiwanese Telecommunications Industry

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  • Hsiang-Hsi Liu
  • Tser-Yieth Chen
  • Lin-Yen Pai

Abstract

This study attempts to make an empirical contribution to the understanding of corporate performance in the telecommunications industry. Data envelopment analysis (DEA) is performed to assess corporate performance for the telecommunications sector in Taiwan and the relationships between corporate performance and merger and acquisition (M&A) transactions. The empirical results reveal that M&A strategy does not seem to enhance corporate performance in the telecommunications industry, whilst an internal growth strategy does improve corporate performance.

Suggested Citation

  • Hsiang-Hsi Liu & Tser-Yieth Chen & Lin-Yen Pai, 2007. "The Influence of Merger and Acquisition Activities on Corporate Performance in the Taiwanese Telecommunications Industry," The Service Industries Journal, Taylor & Francis Journals, vol. 27(8), pages 1041-1051, December.
    • Handle: RePEc:taf:servic:v:27:y:2007:i:8:p:1041-1051
    DOI: 10.1080/02642060701673729
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    1. Eda ORUÇ ERDOĞAN & Murat ERDOĞAN, 2014. "Effect of Acquisition Activity on the Financial Indicators of Companies: An Application in BIST," International Journal of Business and Social Research, LAR Center Press, vol. 4(7), pages 17-22, July.
    2. Wanke, Peter & Maredza, Andrew & Gupta, Rangan, 2017. "Merger and acquisitions in South African banking: A network DEA model," Research in International Business and Finance, Elsevier, vol. 41(C), pages 362-376.
    3. Eda ORUÇ ERDOĞAN & Murat ERDOĞAN, 2014. "Effect of Acquisition Activity on the Financial Indicators of Companies: An Application in BIST," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 4(7), pages 17-22, July.
    4. Ryu, Min Ho & Yang, Shuying & Kim, Seongcheol, 2018. "Do telecom carrier takeovers create value? Longitudinal analysis of U.S. telecom carrier takeovers from 1996 to 2005," Telecommunications Policy, Elsevier, vol. 42(5), pages 395-408.
    5. Gholam R. Amin & Ali Emrouznejad & Said Gattoufi, 2017. "Modelling generalized firms’ restructuring using inverse DEA," Journal of Productivity Analysis, Springer, vol. 48(1), pages 51-61, August.
    6. Hai-Liu Shi & Ying-Ming Wang & Sheng-Qun Chen & Yi-Xin Lan, 2017. "An approach to two-sided M&A fits based on a cross-efficiency evaluation with contrasting attitudes," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(1), pages 41-52, January.

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