Assessing abnormal returns: the case of Chinese M&A acquiring firms

Xiaojing Song, Mark Tippett and Andrew Vivian

Research in International Business and Finance, 2017, vol. 42, issue C, 191-207

Abstract: This paper analyzes the economic benefits that accrue to Chinese acquiring firms. Our sample is based on 279 Chinese acquiring firms from 1990 until 2008 and leads to three main findings: i) Chinese acquirers have positive abnormal returns in contrast to western acquirers which tend to earn negative abnormal returns; ii) Chinese takeovers involving alternative modes of consideration have higher abnormal returns than cash deals, again in contrast to western acquirers where cash deals earn higher returns, and iii) The difference in the abnormal returns between alternative and cash deals for Chinese acquirers is driven by highly valued firms.

Keywords: Acquisition; China; Consideration; Merger; Event window; Non-parametric (search for similar items in EconPapers)
JEL-codes: C14 G14 G34 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:42:y:2017:i:c:p:191-207

DOI: 10.1016/j.ribaf.2017.05.009

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