The Long-term Wealth Effect in Technology Merger and Acquisition

Based on the empirical study about long-term wealth effect in technology Merger and Acquisition (abbreviated as M&A below), this paper showed that such kind of M&A can cause negative wealth effect significantly in long term, which reflected its high risk. And by analyzing the factors which impact the Buy and Hold Abnormal Return (abbreviated as BHAR below) in the following three years after technology M&A occurred, we found that the higher equity multiplier was, the greater long-term negative wealth effect would be, and technology M&A in main business area and associated transactions could bring a positive impact on the long-term wealth effect.