Cross-border Mergers and Acquisitions and ShareholderWealth: A China-U.K. Comparison

Abstract: Cross-border mergers and acquisitions (CBM&As), as a mode of foreign direct investment (FDI) are becoming increasing popular in both developed and emerging economics. This paper aims to fill the gap of lack of comparative studies on CBM&As between developed-country firms and devel...

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Main Author: Lin, Guozhen
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2015
Online Access:https://eprints.nottingham.ac.uk/30152/
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author Lin, Guozhen
author_facet Lin, Guozhen
author_sort Lin, Guozhen
building Nottingham Research Data Repository
collection Online Access
description Abstract: Cross-border mergers and acquisitions (CBM&As), as a mode of foreign direct investment (FDI) are becoming increasing popular in both developed and emerging economics. This paper aims to fill the gap of lack of comparative studies on CBM&As between developed-country firms and developing-country firms. This paper investigates the performance of acquiring firms from China and the U.K. Using event study, CBM&As create value for shareholders of acquiring firms from both countries.. Financial crisis is considered to be an opportunity for Chinese acquiring firm expands internationally. Performances of transactions made by Chinese acquiring firms in crisis years have a higher abnormal return compare to transactions made in other years. In contrast, crisis year acquisitions by U.K acquirers earn a lower return compare to transactions in others years. Furthermore, high-tech acquisitions by Chinese acquiring firms have a better performance than the U.K. acquiring firm.
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spelling nottingham-301522017-10-19T14:53:21Z https://eprints.nottingham.ac.uk/30152/ Cross-border Mergers and Acquisitions and ShareholderWealth: A China-U.K. Comparison Lin, Guozhen Abstract: Cross-border mergers and acquisitions (CBM&As), as a mode of foreign direct investment (FDI) are becoming increasing popular in both developed and emerging economics. This paper aims to fill the gap of lack of comparative studies on CBM&As between developed-country firms and developing-country firms. This paper investigates the performance of acquiring firms from China and the U.K. Using event study, CBM&As create value for shareholders of acquiring firms from both countries.. Financial crisis is considered to be an opportunity for Chinese acquiring firm expands internationally. Performances of transactions made by Chinese acquiring firms in crisis years have a higher abnormal return compare to transactions made in other years. In contrast, crisis year acquisitions by U.K acquirers earn a lower return compare to transactions in others years. Furthermore, high-tech acquisitions by Chinese acquiring firms have a better performance than the U.K. acquiring firm. 2015 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/30152/1/Final2.pdf Lin, Guozhen (2015) Cross-border Mergers and Acquisitions and ShareholderWealth: A China-U.K. Comparison. [Dissertation (University of Nottingham only)]
spellingShingle Lin, Guozhen
Cross-border Mergers and Acquisitions and ShareholderWealth: A China-U.K. Comparison
title Cross-border Mergers and Acquisitions and ShareholderWealth: A China-U.K. Comparison
title_full Cross-border Mergers and Acquisitions and ShareholderWealth: A China-U.K. Comparison
title_fullStr Cross-border Mergers and Acquisitions and ShareholderWealth: A China-U.K. Comparison
title_full_unstemmed Cross-border Mergers and Acquisitions and ShareholderWealth: A China-U.K. Comparison
title_short Cross-border Mergers and Acquisitions and ShareholderWealth: A China-U.K. Comparison
title_sort cross-border mergers and acquisitions and shareholderwealth: a china-u.k. comparison
url https://eprints.nottingham.ac.uk/30152/