A Study on Overseas Mergers and Acquisitions Performance of Chinese Media Enterprises: The Acquisition of Forbes by DMG Media as an Example

Yinghui Wei ()
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Yinghui Wei: Xian University of Technology

A chapter in Proceedings of the 2023 5th International Conference on Economic Management and Cultural Industry (ICEMCI 2023), 2024, pp 776-786 from Springer

Abstract: Abstract In the context of economic globalization, Chinese corporations have resorted to overseas mergers and acquisitions (M&A) to obtain capital expansion and to optimize resource allocation within the industry. With the gradual tightening of China’s regulatory policies on overseas mergers and acquisitions, along with the increasingly intricate global economic situation, it is now crucial to scrutinize the performance of such M&As and recommend or suggest improvements wherever necessary. This article utilizes the event study method and the financial indicator method to scrutinize the market and long-term performance of Chinese corporations’ overseas mergers and acquisitions, as demonstrated by the acquisition of Forbes Media by DMG Media. Subsequently, the outcomes show that the M&A event announcement is beneficial news for DMG Media in the short run. However, in the medium and long term, all the financial indicators and economic value added have decreased considerably. Consequently, the performance achieved by these M&As is incapable of compensating for the damage caused by inadequate enterprise operations. Therefore, this paper offers recommendations for Chinese firms’ mergers and acquisitions, as well as the integration of overseas assets, considering the policy and regulatory environment, industry environment, and corporate governance.

Keywords: Overseas Mergers and Acquisitions; Event Study; Financial Indicator Method; Economic Value Added; Performance Study (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-368-9_92

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