Announcement Effect: An Empirical Study of omestic and Cross-Border M&As by China firms
Date Issued
2008
Date
2008
Author(s)
Wang, Fu-Han
Abstract
In this paper, we use event study to discuss the announcement effects of China enterprises’ M&As. The empirical results show that Shanghai Stock Exchange-listed China enterprises which engage in domestic M&As, whether the acquiring firm and the target firm are in the same industry or among different industries, have significantly positive cumulative abnormal returns near the announcement date. While the Shenzhen Stock Exchange-listed Chinese enterprises which engage in domestic M&As, have no significant cumulative abnormal returns. esides, considering the cumulative abnormal returns after the announcement date, the Shanghai Stock Exchange-listed Chinese enterprises which engage in domestic M&As, whether the acquiring firm and the target firm are in the same industry or among different industries, have significantly positive cumulative abnormal returns in the event window (0,1). While the Shenzhen Stock Exchange-listed Chinese enterprises which engage in domestic M&As, have negative cumulative abnormal returns in the event window (0,1). Especially, if the acquiring firm and the target firm are in the same industry, in the event window (0,14), there are significantly negative cumulative abnormal returns -1.9155%. Considering the cross-border M&As, the insignificantly cumulative abnormal returns of the Shanghai Stock Exchange-listed China enterprises are higher than those of the Shenzhen Stock Exchange-listed China enterprises. Due to the insufficient samples, we are unable to use strictly statistical tests to analyze the datas. But our conclusions provide further studies a trend to follow.
Subjects
Domestic M&As
Cross-border M&As
Announcement Effects
Type
thesis
File(s)![Thumbnail Image]()
Loading...
Name
ntu-97-R95724036-1.pdf
Size
23.32 KB
Format
Adobe PDF
Checksum
(MD5):2d4532c9c0cfffc76269a41f6c1a9fb9