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Comparative analysis of stock performance to announcement of mergers and acquisitions deals in China mainland and Hong Kong from 2000-2010
Halmstad University, School of Social and Health Sciences (HOS). (Economics)
2012 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This study analyzes the stock performance of bidding firms in China mainland and Hong Kong around the announcement of mergers and acquisitions transaction. The sample consists of 19 bidding firms in mainland and 11 bidding firms in Hong Kong. Hang Seng Index and Shanghai Composite Index are two proxies for market returns. The result that both average abnormal return and cumulative abnormal return to bidders in China mainland are positive whereas AAR to bidders in Hong Kong is positive in the announced date and CAR is negative during the event window (-5, +5). Compare to two regions, the announcement of mergers and acquisitions in mainland regarded as ‘good news’ to its stock price; however, it is not as good as for Hong Kong market. In the total method of payment, there are 8 transactions by stock and up to 22 deals by cash; that above 70% of acquisitions are pure cash payments in the entire sample. Through the regression model, the author finds regions of acquisitions affect the return because it is tested statistical significant at 5 percent significance level. And methods of payment do not affect abnormal returns and cumulative abnormal return to bidding firms during the event period.

Place, publisher, year, edition, pages
2012. , 40 p.
Series
Halmstad University Dissertations
Keyword [en]
Mergers and acquisitions, event study, abnormal return
National Category
Economics
Identifiers
URN: urn:nbn:se:hh:diva-18232OAI: oai:DiVA.org:hh-18232DiVA: diva2:536805
Subject / course
Economics
Presentation
2012-06-01, 09:00 (English)
Uppsok
Social and Behavioural Science, Law
Supervisors
Examiners
Available from: 2012-06-26 Created: 2012-06-25 Last updated: 2012-06-26Bibliographically approved

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Ruyi, Dai
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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf