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

Du, Min; Boateng, Agyenim

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.

Citation

Du, M., & Boateng, A. (2014, September). An Analysis of Long-term Acquirers’ Returns of Cross-border Mergers and Acquisitions: Evidence from Chinese Acquiring firms. Paper presented at British Academy of Management 2014 Conference, Belfast, North Ireland, UK

• Presentation Conference Type: Conference Paper (unpublished)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