Facebook:@ www.facebook.com/ S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 1 GRADUATION THESIS Major: International Business Administration A STUDY ON WITHDRAWN MERGER PROPOSALS INVOLVING PRIVATE TARGET Facebook:@ www.facebook.com/ S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 1 TABLE OF CONTENTS LIST OF ABBREVIATIONS..................................................................................... LIST OF FIGURES .................................................................................................... LIST OF TABLES ...................................................................................................... ACKNOWLEDGEMENTS........................................................................................ CHAPTER 1: INTRODUCTION............................................................................1 1.1. Background.......................................................................................................1 1.2. Research questions and research objectives.....................................................3 1.3. Scope of the study.............................................................................................4 1.4. Research methodology......................................................................................4 1.4.1. Method of collecting data...........................................................................4 1.4.2. Method of processing data .........................................................................5 1.5. Thesis structure .................................................................................................5 CHAPTER 2: LITERATURE REVIEW................................................................7 2.1. Merger and withdrawals of merger...................................................................7 2.2. Empirical evidences of related literature about withdrawals of merger...........8 2.3. Factors affecting withdrawn merger proposals’ abnormal return ....................9 2.3.1. Target firm status .......................................................................................9 2.3.2. Method of payment ...................................................................................10 2.3.3. Bidder cash level ......................................................................................11 2.3.4. Bidder leverage level................................................................................11 2.3.5. Abnormal return from merger announcement .........................................11 2.3.6. Multiple bidders .......................................................................................12 2.3.7. Relatedness...............................................................................................12 2.3.8. Relative size of bidder versus target ........................................................13 2.3.9. Financial crisis.........................................................................................13 Facebook:@ www.facebook.com/ S Á C H – T À I L I Ệ U T H I T U Y Ể N Trang 2 2.3.10. Bidder’s return on assets........................................................................13 CHAPTER 3: RESEARCH DESIGN ...................................................................14 3.1. Estimation of valuation effects.......................................................................14 3.2. Multivariate analysis.......................................................................................15 3.2.1. Hypotheses................................................................................................15 3.2.2. Models ......................................................................................................16 3.3. Data and samples............................................................................................20 3.4. Sample description..........................................................................................21 3.5. Correlation mat