Abstract

This paper investigates the relationships among merger and acquisition (M&A), strategic alliances and organizational performance. This paper compares the influences of M&A and strategic alliances from 1993 to 2008 on both stock price and trading volumes of underlying stock around the announcement date on Taiwan stock market. The empirical results indicate a strong relationship between strategic alliance event and SCAR and SCAV in electronics industries. The SAV results for M&A events are positive and significant for non-electronics industries, and there is a strong relationship between M&A event and SCAR and SCAV. Furthermore, among the listed companies, the SAV results for M&A events and strategic alliance event are positive and significant, and there is positive effect in SCAR and SCAV for M&A events, and there is also positive effect in SCAV for strategic alliance events.

Key words: Merger and Acquisition, strategic alliance, trading volumes, stock price, knowledge innovation.