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The Long-term Performance of Cross-border Mergers and Acquisitions — Evidence from the Chinese Stock Market

by Sai Lan, Fan Yang, Hong Zhu

ARTICLE | Chinese Management Studies | 2015


Abstract


Purpose – The purpose of this paper is to examine Chinese firms’ long-term value creation derived from cross-border mergers and acquisitions (CBMAs).

Design/methodology/approach – We collected a sample of 140 CBMAs conducted by Chinese firms listed in Shenzhen and Shanghai stock markets between 1997 and 2010. Long-horizon event study methodology was employed to test hypotheses.

Findings – We find Chinese firms gain long-term value from CBMAs. In particular, we find that Chinese firms tend to gain more value from targets from developed countries; and Chinese state-owned firms are more capable of gaining value from CBMAs than Chinese private firms.