Abstract
In recent years, Chinese enterprises’ overseas mergers and acquisitions have become increasingly active. The method of overseas mergers and acquisitions can be regarded as a low-cost and good-effec...
Highlights
There were traumatic economic events in 2011 and continuous challenges in the banking sector and the Eurozone, the 2012 grant Thornton business report, investigated 12,000 enterprises in 40 economies
As the state-owned enterprise in overseas acquisition plays an important role and Chinese state-owned enterprises’ ownership has a close relationship with the host countries’ system, this paper focuses on analyzing the influence of state ownership in international acquisition
In the valuation of the performance of Chinese firms’ international acquisition, this paper holds the perspective that the effect of financial risk is more important than the other two indexes, and the effect of the long-term performance is more important than that of short-time performance
Summary
There were traumatic economic events in 2011 and continuous challenges in the banking sector and the Eurozone, the 2012 grant Thornton business report, investigated 12,000 enterprises in 40 economies. The influential factors for the performance of Chinese firms’ overseas acquisitions are assumed to be ownership of the acquirers, the types of target industry and previous acquisitions’ experience. The relevant research only uses one method of event study or financial index method, and the analysis of the performance of the acquisitions always separates risk from performance. This paper comprehensively uses event study and financial index method in the performance analysis, which is to make up for the shortage of the existing research methods. This paper combines event study and financial index method to find those factors, which affect the performance of Chinese international takeovers. The analysis of short-term performance of Chinese firms’ overseas acquisition uses event study, which applies CAPM model to the evaluation of short-term performance. The analysis of long-term performance and risk uses financial index method: the analysis of long-time performance uses Tobin’s Q value model to evaluate the enterprise’s value after merger and acquisition; another one using Z value model to research the risk of bankruptcy that acquirer faces
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