Author(s)

Ke Yang ¹

Affiliation(s)

¹ Business School, Xi'an International University, 18 Yudou Road, Yanta District, Xi'an, Shaanxi 710077, P.R. China

Corresponding Author

Ke Yang

ABSTRACT

The paper analyzes wealth effects of merger and acquisition from 508 China companies between 2015–2016 Chinese stock market turbulence from 2015.8.27 to 2016.5.30, to examine whether payment methods (cash payment and stock payment) could influence wealth effects, and analyze the wealth effects of M&A conducted in the second industry and the third industry. And the findings suggest that M&A cannot create wealth effects in the stock market turbulence, and M&A in the second industry were outperformed by M&A in the third industry within the (-5, +5) event window.

KEYWORDS

Wealth effect, M&A firms, stock market, merger and acquisition

CITE THIS PAPER

Ke Yang, The Empirical Analysis about Wealth Effect of Chinese M&A Firms after Stock Market Crash. Financial Engineering and Risk Management (2022) Vol. 5: 58-66. DOI: http://dx.doi.org/10.23977/ferm.2022.050708.

REFERENCES

[1] Harris, Robert S. and David J. Ravenscraft, (1989) "The Role of Acquisitions in Foreign Direct Investment: Evidence from the US Stock Market", Manuscript, University of North Carolina, Chapel Hill, NC, USA, May.
[2] Megginson, W. and Smart, S. (2005). Introduction to corporate finance. Southbank, Vic.: Thomson/South-Western.
[3] Black, B. (2000) This the First International Merger Wave?. SSRN Electronic Journal.
[4] Brown, S.J., & Warner, J.B. (1980). Measuring security price performance. Journal of Financial Economics, 8, 205–258.
[5] MacKinlay (1997) Event Studies in Economics and Finance, Journal of Economic Literature, Americal Economic Association, Vol. 35; No. 1 (March) pp: 13-39.
[6] Mcwilliam, A., & Siegel, D. (1997) Event studies in management research: Theoretical and empirical issues, Academy of Management Journal, Vol. 40, No. 3,
[7] Ismail, A. (2008) Which acquirer gain more, single or multiple? Recent evidence from the USA market, Global Finance Journal, The School of Business, American University of Beirut, Vol. 19; pp: 72-84.

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