Investigating the Impact of Mergers and Acquisitions on Bidder Performance: The Evidence from China
The development of mergers and acquisitions grows rapidly in Chinese market in recent years, but little study on Chinese M&A activities has been done. This paper is aimed to contribute the literature on M&A in China and examines 192 M&A transactions of Chinese public firms listed on Shan...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2015
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| Online Access: | https://eprints.nottingham.ac.uk/29997/ |
| _version_ | 1848793899957485568 |
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| author | Liu, Yufei |
| author_facet | Liu, Yufei |
| author_sort | Liu, Yufei |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | The development of mergers and acquisitions grows rapidly in Chinese market in recent years, but little study on Chinese M&A activities has been done. This paper is aimed to contribute the literature on M&A in China and examines 192 M&A transactions of Chinese public firms listed on Shanghai Stock Exchange during 2004-2013. From the event study analysis, the results show that generally there are significantly positive market reactions to the Chinese listed acquiring firms. The abnormal returns to acquirer at and a few days (1 day and 2 days) after the announcement of M&A are statistically significant and positive. Alternatively, we examine the sub-samples of different factors including method of payment, relative size, industrial relatedness, private/public target statue, book-to-market ratio and domestic/foreign target statue. Acquisitions of non-cash payment and acquisitions which acquire private target firms show significant positive returns to acquirer, low book-to-market acquirers seem to outperform the high book-to-market acquirers around the announcement of M&A. In addition, from the cross-sectional regression analysis, the result suggests significant negative impact of cash payment acquisition on return to acquirer around the announcement, while factors of book-to-market ratio and domestic target have relatively significantly negative influences on the acquirers’ performance during M&A activities. |
| first_indexed | 2025-11-14T19:07:38Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-29997 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T19:07:38Z |
| publishDate | 2015 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-299972017-10-19T14:50:39Z https://eprints.nottingham.ac.uk/29997/ Investigating the Impact of Mergers and Acquisitions on Bidder Performance: The Evidence from China Liu, Yufei The development of mergers and acquisitions grows rapidly in Chinese market in recent years, but little study on Chinese M&A activities has been done. This paper is aimed to contribute the literature on M&A in China and examines 192 M&A transactions of Chinese public firms listed on Shanghai Stock Exchange during 2004-2013. From the event study analysis, the results show that generally there are significantly positive market reactions to the Chinese listed acquiring firms. The abnormal returns to acquirer at and a few days (1 day and 2 days) after the announcement of M&A are statistically significant and positive. Alternatively, we examine the sub-samples of different factors including method of payment, relative size, industrial relatedness, private/public target statue, book-to-market ratio and domestic/foreign target statue. Acquisitions of non-cash payment and acquisitions which acquire private target firms show significant positive returns to acquirer, low book-to-market acquirers seem to outperform the high book-to-market acquirers around the announcement of M&A. In addition, from the cross-sectional regression analysis, the result suggests significant negative impact of cash payment acquisition on return to acquirer around the announcement, while factors of book-to-market ratio and domestic target have relatively significantly negative influences on the acquirers’ performance during M&A activities. 2015-09-15 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/29997/1/YUFEI_LIU_Dissertation.pdf Liu, Yufei (2015) Investigating the Impact of Mergers and Acquisitions on Bidder Performance: The Evidence from China. [Dissertation (University of Nottingham only)] |
| spellingShingle | Liu, Yufei Investigating the Impact of Mergers and Acquisitions on Bidder Performance: The Evidence from China |
| title | Investigating the Impact of Mergers and Acquisitions on Bidder Performance: The Evidence from China |
| title_full | Investigating the Impact of Mergers and Acquisitions on Bidder Performance: The Evidence from China |
| title_fullStr | Investigating the Impact of Mergers and Acquisitions on Bidder Performance: The Evidence from China |
| title_full_unstemmed | Investigating the Impact of Mergers and Acquisitions on Bidder Performance: The Evidence from China |
| title_short | Investigating the Impact of Mergers and Acquisitions on Bidder Performance: The Evidence from China |
| title_sort | investigating the impact of mergers and acquisitions on bidder performance: the evidence from china |
| url | https://eprints.nottingham.ac.uk/29997/ |