Abstract
This paper analyzes of the economic benefits that accrue to Chinese acquiring firms. Our sample is based on 279 Chinese acquiring firms from 1990 until 2008 and leads to three main findings: i) Chinese acquirers have positive abnormal returns in contrast to western acquirers which tend to earn negative abnormal returns; ii) Chinese takeovers involving alternative modes of consideration have higher abnormal returns than cash deals, again in contrast to western acquirers where cash deals earn higher returns, and iii) The difference in the abnormal returns between alternative and cash deals for Chinese acquirers is driven by highly valued firms.
Original language | English |
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Pages (from-to) | 191–207 |
Number of pages | 17 |
Journal | Research in International Business and Finance |
Volume | 42 |
Early online date | 13 May 2017 |
DOIs | |
Publication status | Published - Dec 2017 |
Keywords
- M&A Acquiring firms
- China
- Consideration
- Merger
- Event window
- Non-parametric