The impact and differences between cross-border and domestic mergers and acquisitions on the market value of firms

Wen  Wang

doi:10.54691/bcpbm.v33i.2782

Authors

Wen Wang

DOI:

https://doi.org/10.54691/bcpbm.v33i.2782

Keywords:

domestic M&A; cross-border M&A; impact; differences; policies.

Abstract

Cross-border M&A has become the main mode of foreign direct investment for Chinese companies. The text uses the literature to briefly analyze the types of M&A, the different effects of different M&A types on the economy, and the effects and differences between cross-border and domestic M&A on the market value of companies, and to make policy recommendations that require attention to the integration of five aspects: strategy, organization and systems, finance, human resources and culture.

Downloads

Download data is not yet available.

References

Ye H., Li S. Min. A Review of Corporate M&A Theory. Journal of Guangdong Institute of Finance, 2008(1): 115-128.

Li Shan-Min, Liu Yong-Xin. The Impact of M&A Integration on the Performance of Merger and Acquisition Firms-A Study Based on the Chinese LPG Industry. Nankai Management Review, 2010, 13(4): 154-160.

Wang Wanqiu, Nie Yuwei. Vertical Integration, Differences in Marketability and M&A Performance. International Business (Journal of the University of International Business and Economics), 2016(3): 150-160.

Yang, Hui-Xin, Ji, Yu-Jun, Lu, Ping. Choice and integration of vertical relationships and institutional arrangements of the division of labor in industrial chains. China Industrial Economics, 2007(9): 14-22.

Feng Genfu, Wu Linjiang. An empirical study on the performance of mergers and acquisitions of listed companies in China. Economic Research, 2001(1):54-61+68.

ZIVA ROZEN-BAKHER. comparison of merger and acquisition (m&a) success in horizontal, vertical, and conglomerate m&as: industry sector vs. services secto[r J]. The service industries journal, 2018, 38(7-8): 492-518.

Conn, R. L., A. Cosh., P. M. Guest, H. Alan. the Impact on UK Acquirers of Domestic, Cross-border, Public and Private Acquisitions. journal of Business Finance and Accounting, 2005, 32: 815-870.

Moeller, B. S., P. E. Schlingemann. global Diversification and Bidder Gains: a Comparison between Cross-border and Domestic Acquisitions. journal of Banking and Finance, 2005, 29: 533-564.

Bradely, M., K. Desai, E. H. Kim. the Rationale behind Interfirm Tender Offers. journal of Economics, 1983, 11(1-4): 183-206.

Kohli, R., B. S. Mann. analyzing Determinants of Value Creation in Domestic and Cross Border Acquisitions in India. International Business Review. 2012, 21: 998-1016.

Hymer, S. H. . The International Operations of National Firms: A Study of Foreign Direct Investment. Cambridge, MA: MIT Press, 1976.

Kiymaz, H., T. K. Mukherjee. the Impact of Country Diversification on Wealth Effects in Cross-border Merges. the Finance Review, 2000, 35(2) : 37-58.

Morck, R., B. Yeung. Internalization: an Event Study Test. journal of International Economics, 1992, 33(1-2): 41-56.

Andrade, G., M. Mitchell, E. Stafford. new Evidence and Perspectives on Mergers. journal of Economic Perspectives, 2001, 15: 103- 120.

Brown, R., Neal, Sarma. CEO Overconfidence, CEO Dominance, and Corporate Acquisitions. journal of Economics and Business, 2007, 59(5): 358-379.

Goergen, M, Renneboog, L. Shareholder Wealth Effects of European Domestic and Cross-border Takeover Bids. European Financial Management, 2004, 10: 9 -45.

Bris, A., C. Cabolis. The Value of Investor Protection: Firm Evidence from Cross-border Mergers. review of Financial Studies, 2008, 21:605-648.

Eckbo, E. B., K. S. Thorburn. gains to Bidders Revisited: Domestic and Foreign Acquisitions in Canada. journal of Financial and Quantitative Analysis. 2000, 35: 1-25.

Hope, O-K, B. W. Thomas, D. Vyas. The Cost of Pride: Why Do Firms from Developing Countries Bid Higher? Journal of International Business Studies, 2011, 42: 128-151.

Jensen, M. C. . Agency Cost of Free Cash Flow, Corporate Finance, and Takeovers. American Economic Review, 1986, 76(2): 323-329.

Auster, E., M. Sirower. the Dynamics of Merger and Acquisitions Waves: a Three-stage Conceptual Framework with Implication for Practice. journal of Applied Behavioral Science, 2002, 47: 216-244.

Aybar, B., Ficici, A. . Cross-border Acquisitions and Firm Value: an Analysis of Emerging-market Multinationals. journal of international business studies, 2009, 40: 1317- 1338.

Hope, O-K, B. W. Thomas. managerial Empire Building and Firm Disclose. journal of Accounting Research, 2008, 46(3): 591-626.

Jensen, M. C., K. J. Murphy. performance Pay and Top-management Incentives. journal of Political Economy, 1990, 98(2): 225-264.

Ball, R., A. Robin, J. Wu. Incentives vs Standards: Properties of Accounting Income in Four East Asian Countries. journal of Accounting and Economics. 2003, 36(1) : 235-270.

Bushman, R. , J. Piotroski, A. Smith. what Determines Corporate Transparency. journal of Accounting Research, 2004, 42(2): 207-252.