Long-term Value Creation of Cross-border Mergers and Acquisitions: Evidence from Chinese Acquiring firms

Du, Min; Boateng, Agyenim

Abstract

This study investigates the long-term acquirer returns of Chinese cross-border mergers and acquisitions (CBM&A) over the period of 1998-2008. Using Buy and Hold Abnormal Returns (BHAR) and Calendar Time methods, we find that Chinese acquiring firms experience negative returns ranging from 0.0292% in 12-month post-event period to 0.1080% in 60-month post-event period. Regarding factors influencing returns, state ownership, interaction between R&D and SOE, formal institutional distance, acquirer size have positive and significant impact on the longterm acquirer returns. However, acquirer cash holding, interaction between tangible resources and SOE appear to have negative and significant impact on long-term returns. The results imply that the role of government is an important source of value creation for CBM&As in China.

• Presentation Conference Type: Conference Paper (Published)
• Conference Name: Annual Meeting of the Academy of International Business – Southeast USA 2013
• Start Date: Oct 25, 2013
• End Date: Oct 27, 2013
• Online Publication Date: Nov 1, 2013
• Publication Date: Nov 1, 2013
• Deposit Date: Dec 4, 2022
• Book Title: Proceedings of the Annual Meeting of the Academy of International Business – Southeast USA “Innovation, Institutions, and Emerging Markets”
• Public URL: http://researchrepository.napier.ac.uk/Output/2972063
• Publisher URL: https://us-se.aib.world/wp-content/uploads/sites/8/2020/10/2013-AIB-SE-Proceedings.pdf