Cross-border M&A and Shareholder Wealth: Evidence from China
This article addresses the question whether companies from emerging economies ——China create shareholder value through cross-border Mergers and acquisitions. The standard event study methodology is used to ascertain the abnormal returns around the announcement day. The study covers the period from 2004 to 2009 with a sample size of 24 events. The announcement effect is positive and significant around the announcement day. The average abnormal return is 2.34％ on day 0, and the two days (days 0 and 1) cumulative abnormal return is 3.14％. Due to sample size limitation, a cross-sectional analysis about the variation among firms abnormal return isnt carried out. But it is found that sample firms have significantly larger scale and lower debt ratio than their peers. Their ROE ate also higher but not significant than those of the peer groups. Moreover, they prefer to acquire the target in their similar industry, carry out the relative-small size deal and aim to gain control rights, which reflect the motivation of Chinese listed company is for long-term strategic effect rather than short-term financial performance. Those may help to explain why the shareholders of these firms can benefit from their firms cross border M&A announcements.
cross-border mergers and acquisitions shareholder wealth effect Chinese listed company
ZHAO Yuhua
Beijing International Studies University, Beijing, China, 100024
国际会议
大连
英文
317-324
2011-06-30（万方平台首次上网日期，不代表论文的发表时间）