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.