Long-Term Performance and Causes Evidence from China’s CMB Overseas Acquisition of WLB
One goal of this study is to investigate the long-term performance of CMB acquisition of WLB.Both the financial ratio analysis and the event study show that CMB haven’t successfully realized its expected synergies.Its market share for profit is decreasing,its relative advantage of ROA with the peer groups is reducing,and the shareholders BHAR return is still negative until 4 years later.Although it isn’t a successful acquisition,it its post- performance shows an upward trend.The other goal of the research is the causes for its efficiency loss.Based on the analysis of net interest margin,cost to income ratio and the core capital adequacy,it is found that the high premium acquisition lowered CMB’s core capital adequacy ratio,restricted its growth of net interest income and decreased its profitability.
China’s banking Overseas acquisition Long-term performance
Zhao Yuhua
School of Economics, Trade and Event Management, Center for Financial Management of High-end Industry, Beijing International Studies University, Beijing, China, 100044
国际会议
大连
英文
288-293
2014-06-30（万方平台首次上网日期，不代表论文的发表时间）