기업 인수합병의 사기업효과에 관한 연구

Using 550 M&A cases by publicly traded firms in Korea Exchange, this study examines private firm effects in Korean M&A market for the period of 2002 to 2010. Private firm effect is that acquiring private firm provides wealthier gains to acquiring firms’ shareholders than public targets. Our major findings are as follows. First, significant abnormal returns exist during announcement periods and even before M&A announcements, implying investors would know about M&A before the announcements. Second, acquiring unlisted firms provides greater abnormal returns than acquiring publicly traded firms. Third, private firm effect is not significant any more to explain cumulative abnormal returns around the announcement date after controlling for acquiring firm’s size, whether a block holder is created by M&A, acquiring firm’s ownership structure, and whether M&A is within industry. Instead, acquiring firm’s size and whether the M&A created a block holder are significant in explaining M&A announcement effect. Private firm effect also exists only when new block holders are formed and for small acquiring firms. This means that private firm effect would exist because small firms tend to acquire unlisted target and acquiring unlisted target is likely to create new block holders. Thus, the size of acquiring firm and the formation of new block holders after M&A would be main factors that can explain private firm effect in Korean M&A market.