| Abstract | The paper investigates the effect of wealth when the foreign companies acquired by Chinese companies. We use the way of event time research to find the evidence and find several results. Firstly, the acquired company get the positive abnormal return in the announce data. Secondly, the ownership, way of merge, the industry, and the region of acquired companies affect the abnormal return. If the foreign company acquired by the SOE company of China, it will get the positive CAR. If the merge occurs in the industry of nature resource or the acquired company is from developed countries, it also will get the positive CAR. We also stand up an empirical mode to find what factors are in done. After that we find some empirical evidence. Firstly, the ownership of Chinese company, mode of merge, industry, and region all have the empirical effect on the CAR. Secondly, the exchange of RMB and distance from the acquired country also has the effect. Finally, we find that the merger by the Chinese company have the positive effect on acquired companies. |