Valuation adjustment mechanisms and postmergers and acquisitions performance：evidence from China
Mergers and acquisitions (M&A) are a common practice in publicly listed companies all around the world. But M&A also carries a significant amount of uncertainty. Because M&A can help listed companies achieve business development and scale expansion in a short amount of time, but it also...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2023
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| Online Access: | https://eprints.nottingham.ac.uk/71271/ |
| _version_ | 1848800657376542720 |
|---|---|
| author | Zhou, Yu |
| author_facet | Zhou, Yu |
| author_sort | Zhou, Yu |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Mergers and acquisitions (M&A) are a common practice in publicly listed companies all around the world. But M&A also carries a significant amount of uncertainty. Because M&A can help listed companies achieve business development and scale expansion in a short amount of time, but it also requires a large amount of funds. It is being widely cited that the use of valuation adjustment methods (VAM) in M&A has long been thought of as a way to lower risks and VAM has grown into a vital study topic to support the healthy development of the M&A market. However, to adequately evaluate this conclusion, additional data are still necessary. This paper experimentally investigates 250 Chinese companies that are listed on the A-share market and finds that implementing the VAM helps enhance and stable post-performance of M&A. VAM stabilizes and enhance M&A post-merger performance through M&A types and payment methods indirectly. This paper also found that when using the VAM agreement, M&A with stock payment method performed best, while with cash performed worst and unrelated party M&A has better performance than that of related party M&A. These empirical findings will assist listed companies in promoting the M&A process more successfully, minimizing associated M&A risks, improving the sustainability of the M&A process, and making better use of the VAM. |
| first_indexed | 2025-11-14T20:55:03Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-71271 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:55:03Z |
| publishDate | 2023 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-712712023-03-27T03:49:21Z https://eprints.nottingham.ac.uk/71271/ Valuation adjustment mechanisms and postmergers and acquisitions performance：evidence from China Zhou, Yu Mergers and acquisitions (M&A) are a common practice in publicly listed companies all around the world. But M&A also carries a significant amount of uncertainty. Because M&A can help listed companies achieve business development and scale expansion in a short amount of time, but it also requires a large amount of funds. It is being widely cited that the use of valuation adjustment methods (VAM) in M&A has long been thought of as a way to lower risks and VAM has grown into a vital study topic to support the healthy development of the M&A market. However, to adequately evaluate this conclusion, additional data are still necessary. This paper experimentally investigates 250 Chinese companies that are listed on the A-share market and finds that implementing the VAM helps enhance and stable post-performance of M&A. VAM stabilizes and enhance M&A post-merger performance through M&A types and payment methods indirectly. This paper also found that when using the VAM agreement, M&A with stock payment method performed best, while with cash performed worst and unrelated party M&A has better performance than that of related party M&A. These empirical findings will assist listed companies in promoting the M&A process more successfully, minimizing associated M&A risks, improving the sustainability of the M&A process, and making better use of the VAM. 2023-02-18 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/71271/1/Dissertation_20408820.pdf Zhou, Yu (2023) Valuation adjustment mechanisms and postmergers and acquisitions performance：evidence from China. [Dissertation (University of Nottingham only)] |
| spellingShingle | Zhou, Yu Valuation adjustment mechanisms and postmergers and acquisitions performance：evidence from China |
| title | Valuation adjustment mechanisms and postmergers and acquisitions performance：evidence from China |
| title_full | Valuation adjustment mechanisms and postmergers and acquisitions performance：evidence from China |
| title_fullStr | Valuation adjustment mechanisms and postmergers and acquisitions performance：evidence from China |
| title_full_unstemmed | Valuation adjustment mechanisms and postmergers and acquisitions performance：evidence from China |
| title_short | Valuation adjustment mechanisms and postmergers and acquisitions performance：evidence from China |
| title_sort | valuation adjustment mechanisms and postmergers and acquisitions performance：evidence from china |
| url | https://eprints.nottingham.ac.uk/71271/ |