Previous bank merger studies have used event study methodology to look at abnormal returns of firms in order to analyze merger performance. Using event study methodology this study will examine the effect the Fubon-TaipeiBank merger had on peer institutions within the Taiwanese financial industry. This study will use stock price reactions to examine the merger between Fubon Financial Inc. and TaipeiBank that was announced on August 8, 2002. The Fubon-TaipeiBank merger was important because it was the first of its kind in Taiwan between a private and state-owned bank.

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