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The Impact of M&As on Chinese Acquirers' Shareholders Wealth and Method of Payment in the Stock Market Turbulence

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DOI: 10.23977/accaf.2022.030109 | Downloads: 10 | Views: 459

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 the impact of M&As on Chinese acquirers’ shareholders wealth after stock market crash, using the event method, collecting 508 companies’ data which have experienced Mergers and acquisitions between August 2015 and May 2016. The findings suggest that  M&A creates significant wealth effects on announcement date, M&As create significant wealth effects in the short-term, cash payment M&As cannot generate more wealth effects than stock payment M&A as expected, but only cash payment M&As create significant abnormal returns at announcement date of M&A. And all results suggest that information leakage of M&A in China stock market.

KEYWORDS

M&As, wealth, method of payment, stock market

CITE THIS PAPER

Ke Yang, The Impact of M&As on Chinese Acquirers' Shareholders Wealth and Method of Payment in the Stock Market Turbulence. Accounting, Auditing and Finance (2022) Vol. 3: 59-67. DOI: http://dx.doi.org/10.23977/accaf.2022.030109.

REFERENCES

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