An Examination Of Shareholders Wealth Effects of Mergers And Acquisitions - The Hong Kong Evidence

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Huang, Lishan (2009) An Examination Of Shareholders Wealth Effects of Mergers And Acquisitions - The Hong Kong Evidence. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

This dissertation concentrates on examining the shareholders wealth effects of mergers and acquisitions in the Hong Kong stock market. By taking a data sample of 31 companies out of the 42 listed companies in the Hang Seng Index during an 18-month period from 01/02/2007 to 01/08/2008, this study provides a discussion on the share price performance of bidding companies and target companies, leading to an analysis of the shareholders wealth effects from mergers and acquisitions activities.

The results of this study show that the post-mergers and acquisitions performance of Hong Kong companies is insignificantly positive on average in the short term, indicating wealth increases for shareholders. Specifically, shareholders of both bidding firms and target firms earned insignificant positive cumulative abnormal returns over the 41-day test period, which is consistent with Jenson and Ruback (1983) as well as Cheng and Leung (2004) based on the Hong Kong market. But such indication of wealth growth is inconsistent with the major findings of western studies such as Gregory (1997) and Limmack (1991).

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 10 Aug 2010 11:27
Last Modified: 31 Dec 2017 13:43
URI: https://eprints.nottingham.ac.uk/id/eprint/22955

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