Volltext-Downloads (blau) und Frontdoor-Views (grau)

Do Chinese M&A activities create shareholder value in the short run? Evidence from Chinese-German cross-border takeovers

  • 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.

Download full text files

Export metadata

Additional Services

Search Google Scholar

Statistics

frontdoor_oas
Metadaten
Author of HS ReutlingenWang, Jing; Charifzadeh, Michel
URN:urn:nbn:de:bsz:rt2-opus4-28566
DOI:https://doi.org/10.22495/clgrv2i2p3
ISSN:2707-1111
eISSN:2664-1542
Erschienen in:Corporate law & governance review
Publisher:Virtus Interpress
Place of publication:Sumy, Ukraine
Document Type:Journal article
Language:English
Publication year:2020
Tag:cross-border takeovers; investment banking; merger & acquisition; value creation
Volume:2
Issue:2
Page Number:14
First Page:33
Last Page:46
DDC classes:340 Recht
Open access?:Ja
Licence (German):License Logo  Creative Commons - CC BY - Namensnennung 4.0 International