Proceedings of the 3d International Conference on Applied Social Science Research

Performance of Mergers and Acquisitions based on the Event Study Method

Authors
Zhu-qing Zheng, Chi Xie
Corresponding Author
Zhu-qing Zheng
Available Online August 2016.
DOI
https://doi.org/10.2991/icassr-15.2016.23How to use a DOI?
Keywords
M&A performance; event study; the ST companies
Abstract
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.

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Proceedings
3d International Conference on Applied Social Science Research (ICASSR 2015)
Part of series
Advances in Intelligent Systems Research
Publication Date
August 2016
ISBN
978-94-6252-148-3
ISSN
1951-6851
DOI
https://doi.org/10.2991/icassr-15.2016.23How to use a DOI?
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  -