The influence of family-controlled firm and managerial ability on M&A strategy and performance

Abstract

This thesis mainly studies the influence of Managerial Ability on family business's M&A activities and financial performance after M&A And This study adds Managerial Ability as an adjustment item to explore the relationship between family business manager's ability and M&A In this study I take advantage of Taiwan-listed and OTC companies from 2010 to 2019 as research samples and analyze them by means of Logit regression and OLS The empirical results show that when the company's CEO managerial ability is higher the company have a greater tendency to mergers and acquisitions indicating that the company is more likely to have M&A In addition if the company managers are classified into three types including family member CEOs non-family member CEOs non-family firm professional managers it is further found that when the family firm CEO is a non family member the company will have much more mergers and acquisitions in the future Especially when the non family CEO has stronger managerial ability the more remarkable the situation is Finally in terms of financial performance after M&A as expected in this thesis if the CEO managerial ability is stronger the company will have significantly better post-merger performance Then if the enterprise type is a family-owned firm and the CEO managerial ability is much stronger the financial performance after M&A will be significantly better than that of the non-family company

Date of Award	2020
Original language	English
Supervisor	Li-Kai Liao (Supervisor)