Performance of Mergers and Acquisitions based on the Event Study Method
Zhu-qing Zheng, Chi Xie
Available Online August 2016.
- https://doi.org/10.2991/icassr-15.2016.23How to use a DOI?
- M&A performance; event study; the ST companies
- All the M&A events which targets are ST companies in the A-share market of Shanghai and Shenzhen stock from 2007 to 2011 are selected as the research samples. This study applies event study method to calculate cumulative abnormal returns (CAR) which are to measure the short-term market performances of companies which M&A targets are ST companies. First, in this paper, the result shows that the short-term market performance of the companies which conduct the M&A activities is rising for the first time in the event announcement five days before and after. Further, comparing the short-term market performance of state companies and non-state companies, the result shows that the short-term market performance of state companies is significantly better than non-state companies.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Zhu-qing Zheng AU - Chi Xie PY - 2016/08 DA - 2016/08 TI - Performance of Mergers and Acquisitions based on the Event Study Method BT - 3d International Conference on Applied Social Science Research (ICASSR 2015) PB - Atlantis Press SP - 80 EP - 82 SN - 1951-6851 UR - https://doi.org/10.2991/icassr-15.2016.23 DO - https://doi.org/10.2991/icassr-15.2016.23 ID - Zheng2016/08 ER -