Investigating the Impact of Mergers and Acquisitions on Bidder Performance: The Evidence from China

Liu, Yufei (2015) Investigating the Impact of Mergers and Acquisitions on Bidder Performance: The Evidence from China. [Dissertation (University of Nottingham only)]

[img] PDF - Registered users only - Requires a PDF viewer such as GSview, Xpdf or Adobe Acrobat Reader
Download (850kB)


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.

Item Type: Dissertation (University of Nottingham only)
Depositing User: Liu, Yufei
Date Deposited: 23 Mar 2016 15:17
Last Modified: 19 Oct 2017 14:50

Actions (Archive Staff Only)

Edit View Edit View