Abstract
This paper studies the effect of M&A announcements on shareholder value of listed companies from Chinese logistics industry. Using event study method, this research examines the market reaction to 181 initial announcements of successful M&As between 2000 and 2016. Some important findings are obtained. Firstly, we find a significantly positive mean market reaction (1.125%) to successful M&As for acquiring firms. Secondly, the market reaction is more positive for firms with a higher level of logistics service integration. The higher the logistics subsector concentration, the higher the abnormal returns. The market reaction to mergers involving the vertical integration of logistics service is more positive than those involving the horizontal integration of logistics service. Finally, the post hoc analysis finds that the market reacts negatively to failed M&As (−1.53%).
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