Dissertation > Excellent graduate degree dissertation topics show

An Empirical Study of Chinese market reaction to the acquisition announcement

Author: MaiQiPi
Tutor: XuLi
School: Fudan University
Course:
Keywords: China Merger and acquisition announcement Abnormal return
CLC: F224
Type: Master's thesis
Year: 2011
Downloads: 127
Quote: 1
Read: Download Dissertation

Abstract


The study examines the market reactions towards all 7524 M&A announcements from 1994 to Sep.2010 involving Chinese listed companies. The results of the event study show that the market has a significantly positive reaction towards M&A announcements, and the average abnormal return is 2.44% for target and 0.89% for bidder on the event day. There are also significantly negative cumulative average abnormal returns (CAAR) from 20 days to 60 days after the event, for both bidder and target, which indicates the short-term speculation on the event or the quick confidence loss of investors towards M&A announcements. Besides, from the significant positive CAAR for both bidder and target from 60 days to 20 day prior to event, the information leakage situation exists in the Chinese market. The further event study analysis and the regression models of the cumulative abnormal returns indicate that market has shown much more positive reactions towards cross-border M&A deals, both for the event day and for the window 20 to 60 days after the event day. Besides, larger-sized M&A deals are seen with more potential profits and more risks as well, so more early-informed investors are willing to join the target companies before the events while investors are also more easily to leave the companies after the M&A announcements. Furthermore, the market reactions towards first M&A announcements and M&A deals with Chinese listed companies as both bidder and target are similar to the reaction towards the whole sample, which indicate the imperfection of current regulations of Chinese stock market.

Related Dissertations

  1. Research of the Marginalization Phenomenon of Calligraphy Art in the Period of Republic of China,J292.27
  2. The Study on the Location and Level of Grain Market in Peking during Republican China Period,K291
  3. On Civilian-run Colleges and Universities Issue and Its Internal Management System to Improve,G647
  4. Study on Mental Health and It’s Impact Factors of International Students in China,B849
  5. Analysis on Registration System of Forest Right,D923.2
  6. The Way of Reforming and Perfecting CPC’s Ruling Style,D25
  7. Historical Survey of Political Socialization in School Education during Early Days of PRC,G529
  8. The Evolution of Chinese Corporate Archives Management System,G275.9
  9. The Research on Capital Market Financing of Private Universities in China,G648.7
  10. The Comparative Study on Higher Education Investment Sources Between India and China,G649.1
  11. Chinese Men’s Basketball World Basketball Offensive Tactics a Comparative Analysis,G841
  12. Effects of Different Corn Planting Densities on Soil Moisture and Yield in Rainfed Farming Land of North-east of China,S513
  13. China 's science and technology concept study Hengfang,N09
  14. China North China Branch of Sinopec Sales Co., Ltd. Logistics Strategy,F426.22
  15. Chinese freshwater planarian classification and karyotype studies (Ⅺ),X174
  16. Gordon Moldan Lobsang China Life Research Masters,K28
  17. The Impact of Chinese Opera Theory on Chinese Vocal Music Development,J616
  18. The Research of Lvsimian’s "General History of China",K092
  19. Jews during World War II China relations , and the Japanese American Jews,K152
  20. The Research on the Aid of the International Red Cross Organization to China to All-Round Period of Anti-Japanese War,K265
  21. The Research of Chinese National Musical Instruments’ Improvement in the 20th Century,J632

CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
© 2012 www.DissertationTopic.Net  Mobile