TY - JOUR U1 - Wissenschaftlicher Artikel A1 - Wang, Jing A1 - Charifzadeh, Michel A1 - Herberger, Tim T1 - Do Chinese M&A activities create shareholder value in the short run? Evidence from Chinese-German cross-border takeovers JF - Corporate law & governance review N2 - Our paper investigates the response of acquiring firms’ stock returns around the announcement date in cross-border mergers and acquisitions (M&A) between listed Chinese acquirers and German targets. We apply an event study methodology to examine the shareholder value effect based on a sample of M&A deals over the most recent period of 2012-2018. We apply a market model event study based on the argumentation of Brown and Warner (1985) and use short-term observation periods according to Andrade, Mitchell, and Stafford (2001) as well as Hackbarth and Morellec (2008). The results indicate that the announcement of M&A involving German targets results in a positive cumulative abnormal return of on average 2.18% for Chinese acquirers’ shareholders in a five-day symmetric event window. Furthermore, we found slight indications of possible information leakage prior to the formal announcement. Although it shows that the size of acquiring firms is not necessarily correlated with the positive abnormal returns in the short run, this study suggests that Chinese acquirers’ shareholders gain higher abnormal returns when the German targets are non-listed companies. KW - investment banking KW - merger & acquisition KW - cross-border takeovers KW - value creation Y1 - 2020 UN - https://nbn-resolving.org/urn:nbn:de:bsz:rt2-opus4-28566 SN - 2707-1111 SS - 2707-1111 U6 - https://doi.org/10.22495/clgrv2i2p3 DO - https://doi.org/10.22495/clgrv2i2p3 VL - 2 IS - 2 SP - 33 EP - 46 S1 - 14 PB - Virtus Interpress CY - Sumy, Ukraine ER -