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The impact of state ownership, formal institutions and resource seeking on acquirers' returns of Chinese M&A.
- Source :
- Review of Quantitative Finance & Accounting; Jul2016, Vol. 47 Issue 1, p159-178, 20p
- Publication Year :
- 2016
-
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. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 0924865X
- Volume :
- 47
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Review of Quantitative Finance & Accounting
- Publication Type :
- Academic Journal
- Accession number :
- 115672640
- Full Text :
- https://doi.org/10.1007/s11156-015-0498-0