Abstract
In stock-exchanged airline mergers, the determination of an exchange ratio is an important issue. The purpose of this paper is providing a simulative study of exchange ratio determination for airline merger in Taiwan. The paper is based on the Larson-Gonedes merger exchange ratio model(1969) and extends it to consider marker risk. In addition, we use the exponential smoothing model to estimate the expected post-merger price-earnings ratio. Our sample consists of China Airlines and EVA Airways. We find that the L-G model indicates the interval of exchange ratios which will enhance, or at last not cause any diminution in the wealth positions of all parties to a proposed airline merger. Also, the bargaining area offers some information to help merger candidates to negotiate final actual exchange ratio.
Identifer | oai:union.ndltd.org:NSYSU/oai:NSYSU:etd-0718102-172431 |
Date | 18 July 2002 |
Creators | Yu, Chung-Hsun |
Contributors | none, none, Chau-Jung Kuo |
Publisher | NSYSU |
Source Sets | NSYSU Electronic Thesis and Dissertation Archive |
Language | Cholon |
Detected Language | English |
Type | text |
Format | application/pdf |
Source | http://etd.lib.nsysu.edu.tw/ETD-db/ETD-search/view_etd?URN=etd-0718102-172431 |
Rights | campus_withheld, Copyright information available at source archive |
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