Do cross-border mergers and acquisitions increase short-term market performance? The case of Chinese firms

By Fang Tao, Xiaohui Liu, Lan Gao, Enjun Xia. 2017

146 citations recorded by the source corpus.

Despite the new momentum in cross-border mergers and acquisitions (MA this effect is more significant in the mainland Chinese stock markets (Shanghai and Shenzhen) than that in the Hong Kong market. The shareholders of Chinese firms that acquire a target firm in a host country with a low level of political risk gain higher cumulative abnormal returns than those firms targeting companies in countries with a high level of political risk. The shareholders of Chinese state-owned enterprises experience lower abnormal returns compared with those of Chinese privately owned firms when engaging in cross-border M&A deals.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/a1334a01c613709881133370641e5cb8cbf94d5f