Article

The long-term performance of cross-border mergers and acquisitions : Evidence from the Chinese stock market

in Chinese Management Studies, 9 (3)

Lan, Sai ; Yang, Fan ; Zhu, Hong

Voir la revue «Chinese Management Studies»

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 The authors 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 used to test hypotheses. Findings The authors find Chinese firms gain long-term value from CBMAs. In particular, the authors 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. Originality/value Given Chinese firms are increasingly acquiring targets outside of China in recent years, it is still unclear about whether Chinese firms gain value from these very expensive cross-border deals. This is one of the first studies that address the question: What are the long-term performance outcomes of Chinese CBMAs in recent years?

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