On Mergers & Acquisitions performance of Information Technology Sector in short-term perspective

Recently, the development of network industry has been hotly discussed in theoretical circles. And the research on network industry mergers & acquisitions (M&A) performance has become an urgent problem to be resolved seriously. The listed companies in information technology sector occurred M&A events from 2001 to 2007 are chosen as samples, and are applied in research, event study to analyze their M&A performance from short-term perspective. The results show that: (i) from all M&A samples, the market response is active, which brings positive return in spite of lag response; (ii) the market response referring to related transaction events is indifferent, and (iii) the market response is different because of different products´ intangible degree. The higher degree of the intangibility the weaker the market response is. Finally, opinions and suggestions are proposed on the basis of practical situations.