| dc.description.abstract | In November of 1999, Yuanta Securities announced that it was going to merge with Core Pacific Securities, which is an important milestone in the merge of Securities firms. Under the threats of international competition and diversification from foreign investment banks, securities firms in Taiwan are under the pressure of change in many aspects, such as human resource, capital, technology and strategy. Owing to the competition of survival, securities firms try to expand the market share by merge or share-holding model to reach the goal of internationalization. Based on the benefits of economy scale, expanding market share is a popular way. On the other hand, it matches up the worldwide trend of merge and the encouragement of Taiwan government.
In Taiwan, most prices of merger between two involved companies are decided by the negotiation of the chairman. Few cases are decided through effective data or models. This paper tends to analyze if a merger will enhance the value of firm and synergy or not.
After 3-year integration, from 2000 to 2002, this paper tries to investigate Polaris Securities synergy of finance, operation and marketing from several dimensions, such as analysis of finance, revenue, cost, market share and comparison of other securities firms.
Empirical results show that the case mentioned here presents the effects of integration. It leads to some important achievements of merger. For instance, Polaris Securities has increased the number of branches to expand market share and integrated the enterprise resources to reduce operation cost after merger. Moreover, it has adjusted capital structure to enhance competitiveness. According to the statistics data of merge cases from McKinsey, it presents that this case of merger integrate successfully and completely. Therefore, it tends to be concluded that the case in this paper shows the synergy of merge. | en_US |