Impact of overseas M&As on Chinese service enterprises’ market value

Hao Lu, Jin Hong, Qiong Chen and Ping Deng

The Service Industries Journal, 2022, vol. 42, issue 15-16, 1256-1276

Abstract: China’s services sector mergers and acquisitions (M&As) in emerging economies, such as the Belt and Road Strip (BRS), have been increasing rapidly. Past studies have focused on M&A market value performance (MVP) in developed regions and industry sectors, ignoring M&As in emerging economies and services sectors. Drawing on signal theory effects of M&A announcements on MVP, this study assessed the performance of Chinese stock market reactions to M&A announcements and the key factors in M&A MVP in emerging economies and service sectors. The study is based on an event study of a sample of Chinese service sector M&A announcements in the BRS during the years 2013–2017. The findings indicate that China’s service sector M&As in the BRS have achieved significantly positive MVP since 2013. MVP was statistically significant only in the technology services and public services sub-sectors. M&A contract size was positively related to service sector M&A MVP. The authors discuss implications of the study findings for future research and managerial practice.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/02642069.2019.1608189 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:servic:v:42:y:2022:i:15-16:p:1256-1276

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/FSIJ20

DOI: 10.1080/02642069.2019.1608189

Access Statistics for this article

The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

More articles in The Service Industries Journal from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().