Identifying Stock Market Reactions to Acquisition Announcements in Taiwan Land Auction

Abstract

This paper examines the market reactions to acquisition announcements in Taiwan land auctions. Empirical evidence shows that successful bidders can enjoy significant positive abnormal returns as a result of land auction events. Specifically, successful acquisitions in Taiwan land auction have an intra-industry contagion effect. The land size and the market atmosphere before the auction events benefit the stock market reactions.