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The Impact of Cross-border Acquisition of Listed Chinese Companies on Stock Price

Zhang, Yinnong LU and Wang, Xulong LU (2017) NEKN02 20171
Department of Economics
Abstract
In this study, we analyze the abnormal returns of Chinese acquirer's shareholders around the day of the acquisition announcement to check the impact of the cross-border acquisition by using event study method and difference-in-difference model. A total sample of 81 cross-border acquisition deals is used, and the results of two methods are consistent, we find that the occurrence of cross-border acquisition can cause a positive effect on the acquirer. However, based on the reality of inefficiency of Chinese financial market, to some degree, information leakage and inside trading might have some effects on acquirers' stock price.
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author
Zhang, Yinnong LU and Wang, Xulong LU
supervisor
organization
course
NEKN02 20171
year
type
H1 - Master's Degree (One Year)
subject
keywords
cross-border, acquisition, event study, abnormal return.
language
English
id
8911074
date added to LUP
2017-06-13 15:17:50
date last changed
2017-06-13 15:17:50
@misc{8911074,
  abstract     = {In this study, we analyze the abnormal returns of Chinese acquirer's shareholders around the day of the acquisition announcement to check the impact of the cross-border acquisition by using event study method and difference-in-difference model. A total sample of 81 cross-border acquisition deals is used, and the results of two methods are consistent, we find that the occurrence of cross-border acquisition can cause a positive effect on the acquirer. However, based on the reality of inefficiency of Chinese financial market, to some degree, information leakage and inside trading might have some effects on acquirers' stock price.},
  author       = {Zhang, Yinnong and Wang, Xulong},
  keyword      = {cross-border,acquisition,event study,abnormal return.},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Impact of Cross-border Acquisition of Listed Chinese Companies on Stock Price},
  year         = {2017},
}