Do Chinese Acquirers Fail in Overseas M&As?
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| Title | Do Chinese Acquirers Fail in Overseas M&As?
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| Author | Lulu Gu and Robert Reed |
| Organization | School of Finance, Zhangnan University of Economics and Law；Economics and Finance, University of Canterbury |
| Email | g_lulu@126.com,bob.reed@canterbury.ac.nz |
| Key Words | Event Study；Overseas M&A；"Go Global" Strategy |
| Abstract | Our paper provides a thorough analysis of Chinese outbound merger and acquisitions from 1994 through 2009. We find that on average, Chinese outbound merger and acquisitions produced positive abnormal returns as measured on the announcement date, and a non-negative abnormal return in 3-year long term performance, which indicates a successful “Go Global” strategy of Chinese Government. However, privately-owned firms experienced greater wealth effects than government-owned firms. Further, mainland-listings underperform HK and US listings, glamour firms outperform value firm significantly. |
| Serial Number | WP77 |
| Time | 2011-07-20 |
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