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An Analysis of Long-term Acquirers’ Returns of Cross-border Mergers and Acquisitions: Evidence from Chinese Acquiring firms

Du, Min; Boateng, Agyenim

Authors

Agyenim Boateng



Abstract

We examine the effects of state ownership, institutions and resource-seeking behavior on post-acquisition stock price returns of Chinese cross-border mergers and acquisitions over the period 1998–2008. Chinese acquiring firms experience negative returns ranging from 2.92 to 10.80 % in 12- and 60-month post-event periods, respectively.
State ownership (SOE), interaction between R&D and SOE, formal institutional distance and acquirer size have a positive and significant impact on the long-term acquirer returns. However, the interaction between tangible resources and SOE and acquirer cash holdings appears to have a negative and significant impact on long-term returns. Overall, our results suggest that the state and institutions constitute important sources of long-term value creation for Chinese acquirers.

Presentation Conference Type Conference Paper (unpublished)
Conference Name British Academy of Management 2014 Conference
Start Date Sep 9, 2014
End Date Sep 11, 2014
Deposit Date Dec 4, 2022
Public URL http://researchrepository.napier.ac.uk/Output/2972079