The Purpose of the study is to test empirically the effects of merger.
In particular, the issues examined in this thesis are to evaluate perfectly competitive acquisition market and informational efficiency, to measure the excess return from merger, and to test pragmatic information content of merger.
The results of the empirical test can be summarized as follows:
1) The stockholders of merger firms gain abnormal return therefore merger activities contributes to shareholder's wealth.
2) The stockmarket in Korea is testified as informational efficiency, but it includes many incompetitive factors.
3) Merger activities contain pragmatic information content.
