Cross-border Acquisitions and Shareholder Wealth: Evidence from China During 2000-2013
This study investigates the shareholders’ wealth effects of cross-border acquisitions (CBAs) of Chinese and foreign acquiring companies. We identify 191 CBAs with foreign targets of Chinese acquirers and 426 CBAs with Chinese targets of foreign acquirers during the period January 2000 through Decemb...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2014
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| Online Access: | https://eprints.nottingham.ac.uk/27394/ |
| _version_ | 1848793362203672576 |
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| author | CHANG, Zhenghao |
| author_facet | CHANG, Zhenghao |
| author_sort | CHANG, Zhenghao |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This study investigates the shareholders’ wealth effects of cross-border acquisitions (CBAs) of Chinese and foreign acquiring companies. We identify 191 CBAs with foreign targets of Chinese acquirers and 426 CBAs with Chinese targets of foreign acquirers during the period January 2000 through December 2013.
Our results based on short-term event study reveal that Chinese acquiring firms generate significant positive abnormal returns of 5.09% at the [-30,+1] event window and foreign acquiring companies generate significant positive abnormal returns of 3.70% at the [-1,+1] event window. We find significant pre-event returns for Chinese bidder. This indicates possible leakages in the information system, which may not be surprising given the emerging nature of China markets.
Additionally, in the cross-sectional regression analysis, Chinese bidders’ returns are positively correlated with prior experience on CBAs to acquire foreign companies and relatedness of industry sectors. Foreign bidders’ returns are negatively correlated with the deal size of CBAs, prior experience on CBAs to acquire Chinese firms and the method of payment by cash. Meanwhile, returns of foreign bidders are positively correlated with if the bidders come from the consumer, non-cyclical sectors and the yearly growth rate of China’s GDP. |
| first_indexed | 2025-11-14T18:59:05Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-27394 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:59:05Z |
| publishDate | 2014 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-273942017-10-19T13:56:53Z https://eprints.nottingham.ac.uk/27394/ Cross-border Acquisitions and Shareholder Wealth: Evidence from China During 2000-2013 CHANG, Zhenghao This study investigates the shareholders’ wealth effects of cross-border acquisitions (CBAs) of Chinese and foreign acquiring companies. We identify 191 CBAs with foreign targets of Chinese acquirers and 426 CBAs with Chinese targets of foreign acquirers during the period January 2000 through December 2013. Our results based on short-term event study reveal that Chinese acquiring firms generate significant positive abnormal returns of 5.09% at the [-30,+1] event window and foreign acquiring companies generate significant positive abnormal returns of 3.70% at the [-1,+1] event window. We find significant pre-event returns for Chinese bidder. This indicates possible leakages in the information system, which may not be surprising given the emerging nature of China markets. Additionally, in the cross-sectional regression analysis, Chinese bidders’ returns are positively correlated with prior experience on CBAs to acquire foreign companies and relatedness of industry sectors. Foreign bidders’ returns are negatively correlated with the deal size of CBAs, prior experience on CBAs to acquire Chinese firms and the method of payment by cash. Meanwhile, returns of foreign bidders are positively correlated with if the bidders come from the consumer, non-cyclical sectors and the yearly growth rate of China’s GDP. 2014-09-17 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/27394/1/2014_Zhenghao_CHANG.pdf CHANG, Zhenghao (2014) Cross-border Acquisitions and Shareholder Wealth: Evidence from China During 2000-2013. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | CHANG, Zhenghao Cross-border Acquisitions and Shareholder Wealth: Evidence from China During 2000-2013 |
| title | Cross-border Acquisitions and Shareholder Wealth: Evidence from China During 2000-2013 |
| title_full | Cross-border Acquisitions and Shareholder Wealth: Evidence from China During 2000-2013 |
| title_fullStr | Cross-border Acquisitions and Shareholder Wealth: Evidence from China During 2000-2013 |
| title_full_unstemmed | Cross-border Acquisitions and Shareholder Wealth: Evidence from China During 2000-2013 |
| title_short | Cross-border Acquisitions and Shareholder Wealth: Evidence from China During 2000-2013 |
| title_sort | cross-border acquisitions and shareholder wealth: evidence from china during 2000-2013 |
| url | https://eprints.nottingham.ac.uk/27394/ |