Abstract
Based on a sample of 995 acquisition events in Chinese stock market from 1999 to 2007, we simultaneously investigate the acquisition return for bidders and the target and find that both of them are slightly positive, which is inconsistent with foreign experiences. Besides, we also construct detailed research for the relationship between acquisition return and ownership structure and find that both of them are very weak and statistically insignificant. Furthermore, we find in our results that, as ownership structure decentralization process going on for Chinese publicly listed firms, the traditionally agency problem between the biggest shareholder and rest shareholders in China has been shifting to classical agency problem, the conflict between shareholder and manager. Finally, we find that hostile attack positively affects seller’s acquisition return but damage buyer’s profit and that Chinese stock market reform has significant influence on acquisition return, for both of them.
Published Version
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