Do Acquisitions and Mergers Improve Corporate Performance: Evidence from Chinese Listed Companies
Abstract During the last decade, Chinese M&A activities have experienced a dramatic upward trend. Increasing scholars investigate Chinese M&A and test the influence of Chinese acquisitions and mergers on firms’ post-merger performance. However, their studies about the impact of M&A acti...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2016
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| Subjects: | |
| Online Access: | https://eprints.nottingham.ac.uk/36389/ |
| _version_ | 1848795278511964160 |
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| author | CHEN, Yuhong |
| author_facet | CHEN, Yuhong |
| author_sort | CHEN, Yuhong |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Abstract
During the last decade, Chinese M&A activities have experienced a dramatic upward trend. Increasing scholars investigate Chinese M&A and test the influence of Chinese acquisitions and mergers on firms’ post-merger performance. However, their studies about the impact of M&A activities on firms’ post-merger performance are still mixed. This paper includes sample data of 743 Chinese M&A deals that took place during the period of 2000 to 2010. Industry adjusted operating cash flows on assets, operating margin, ROA and ROE were used as measures to capture post-merger performance. We test the influence of M&A activities on post-merger performance and also examine the determinants that might influence the post-merger performance. Cross-sectional regression models are used to capture the abnormal industry adjusted returns and sample OLS regression models are used to test the relationship between the post-merger performance and its determinant factors. Empirical results shows that merged firms have improve their post-merger performance significant for the first three years after acquisitions, however, for the long-term, M&A does not improve merged firms’ performance. Besides, regression results reports that mergers within the same industry will improve the post-merger performance for both short and long term; target profitability would significantly improve post-merger performance for the short-term; high level of leverage will depress the post-merger performance for both short and long term; relative size has significant negative influence on post-merger performance for the short-term and this influence becomes positive for the long-run. |
| first_indexed | 2025-11-14T19:29:33Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-36389 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T19:29:33Z |
| publishDate | 2016 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-363892017-10-19T16:58:49Z https://eprints.nottingham.ac.uk/36389/ Do Acquisitions and Mergers Improve Corporate Performance: Evidence from Chinese Listed Companies CHEN, Yuhong Abstract During the last decade, Chinese M&A activities have experienced a dramatic upward trend. Increasing scholars investigate Chinese M&A and test the influence of Chinese acquisitions and mergers on firms’ post-merger performance. However, their studies about the impact of M&A activities on firms’ post-merger performance are still mixed. This paper includes sample data of 743 Chinese M&A deals that took place during the period of 2000 to 2010. Industry adjusted operating cash flows on assets, operating margin, ROA and ROE were used as measures to capture post-merger performance. We test the influence of M&A activities on post-merger performance and also examine the determinants that might influence the post-merger performance. Cross-sectional regression models are used to capture the abnormal industry adjusted returns and sample OLS regression models are used to test the relationship between the post-merger performance and its determinant factors. Empirical results shows that merged firms have improve their post-merger performance significant for the first three years after acquisitions, however, for the long-term, M&A does not improve merged firms’ performance. Besides, regression results reports that mergers within the same industry will improve the post-merger performance for both short and long term; target profitability would significantly improve post-merger performance for the short-term; high level of leverage will depress the post-merger performance for both short and long term; relative size has significant negative influence on post-merger performance for the short-term and this influence becomes positive for the long-run. 2016-09-08 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/36389/1/Yuhong%20CHEN.pdf CHEN, Yuhong (2016) Do Acquisitions and Mergers Improve Corporate Performance: Evidence from Chinese Listed Companies. [Dissertation (University of Nottingham only)] M&A posr-merger performance |
| spellingShingle | M&A posr-merger performance CHEN, Yuhong Do Acquisitions and Mergers Improve Corporate Performance: Evidence from Chinese Listed Companies |
| title | Do Acquisitions and Mergers Improve Corporate Performance: Evidence from Chinese Listed Companies |
| title_full | Do Acquisitions and Mergers Improve Corporate Performance: Evidence from Chinese Listed Companies |
| title_fullStr | Do Acquisitions and Mergers Improve Corporate Performance: Evidence from Chinese Listed Companies |
| title_full_unstemmed | Do Acquisitions and Mergers Improve Corporate Performance: Evidence from Chinese Listed Companies |
| title_short | Do Acquisitions and Mergers Improve Corporate Performance: Evidence from Chinese Listed Companies |
| title_sort | do acquisitions and mergers improve corporate performance: evidence from chinese listed companies |
| topic | M&A posr-merger performance |
| url | https://eprints.nottingham.ac.uk/36389/ |