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　　For last two decades, acquisitions and alliances have become popular strategies employed by modern corporations. However, it has been extensively discussed by researchers that the expected improvements in profitability and in the wealth of shareholders often do not materialize.
　　The fundamental interpretation why some acquisitions perform poorly was the existence of information asymmetries. Meanwhile, information asymmetry poses serious valuation challenge for acquisition transactions, such as the risk of overpayment. To explore the factors that affect acquisition performance, alliance experience may be an advantage-producing resource in acquisition due diligence. Alliances create opportunities for firms to gain a variety of experiences in exchanging and integrating resources with various similar and dissimilar partners and thus can reduce the information symmetry of acquisitions.
　　This research investigates whether alliance experience is beneficial to value creation of acquisition for the sample of Taiwan, one of the most important emerging markets. We adopted event study methodology for firms’ acquisition performance from 1987 to 2006. It measures cumulative abnormal returns around acquisition announcement. Data were collected from Fare Trade Commission and Securities and Futures Institute of Taiwan. To be considered for the research, both the acquiring and target firms involved have to be listed in the database of Taiwan Economic Journal (TEJ) Data Bank one year before acquisition announcement.
　　The result we examine shows slightly evidence that alliance experience has a negative relation with acquisition performance. Our research contributes to the literature by providing the different inspection on the wealth effects of acquisition in emerging market as most of other studies focus mainly on U.S. and Europe data.

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