Convergence and merger performance of acquiring firms in the broadcasting and telecommunication industries: Evidence from Korean case

This research mainly focuses on mergers and acquisitions (M&As) within the broadcasting and telecommunication industries in Korea, and examines the stock market reaction around the M&A announcement day. The abnormal change in stock price is estimated using the event-study methodology. We, in contradiction to the previous works asserting the M&As' negative effect, conclude that the M&As in these industries have a positive impact on the stock market. In addition, unrelated M&As also have a positive stock market reaction similar to related M&As, and there is no meaningful difference between M&As acquiring content firms and M&As not acquiring them.