Acquisition Premium and Acquirer Abnormal Returns to Acquisition Announcement:Evidence from China Large Outbound Investment
碩士 === 國立成功大學 === 國際企業研究所 === 102 === This study examines the relationship between premiums paid and acquirers’ stock market returns to the announcement of a cross-border acquisition. Drawing on a sample of 37 large Chinese acquirers, we found that the amount of premium is positively associated with...
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ndltd-TW-102NCKU53200122019-05-15T21:42:45Z http://ndltd.ncl.edu.tw/handle/5r492g Acquisition Premium and Acquirer Abnormal Returns to Acquisition Announcement:Evidence from China Large Outbound Investment 併購溢價與宣告日併購方股票異常報酬:以中國併購方之海外併購為例 Tzu-HsiangChou 周子翔 碩士 國立成功大學 國際企業研究所 102 This study examines the relationship between premiums paid and acquirers’ stock market returns to the announcement of a cross-border acquisition. Drawing on a sample of 37 large Chinese acquirers, we found that the amount of premium is positively associated with the acquirers’ stock immediate returns. This result deviates from the findings of prior studies which predict negative stock returns to the premiums announcement. Building on behavioral finance theory, we argue that Chinese investors tend to be overly-confident in the performance of cross-border acquisitions and they view the premium paid as a positive sign to the prospect of the acquisition. Moreover, we also found that the relationship between the premium paid and the stock returns is weakened when the deal is a tender offer or a full ownership acquisition. In sum, we suggest that premiums paid will benefit the acquiring firm’s immediate stock returns when investors perceived that the acquiring firm is able, and about to take a chance on an industrial turning point. Despite that a tender offer will significantly weaken the positive effect of premiums paid. Chiung-Hui Tseng 曾瓊慧 2014 學位論文 ; thesis 44 en_US |
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碩士 === 國立成功大學 === 國際企業研究所 === 102 === This study examines the relationship between premiums paid and acquirers’ stock market returns to the announcement of a cross-border acquisition. Drawing on a sample of 37 large Chinese acquirers, we found that the amount of premium is positively associated with the acquirers’ stock immediate returns. This result deviates from the findings of prior studies which predict negative stock returns to the premiums announcement. Building on behavioral finance theory, we argue that Chinese investors tend to be overly-confident in the performance of cross-border acquisitions and they view the premium paid as a positive sign to the prospect of the acquisition.
Moreover, we also found that the relationship between the premium paid and the stock returns is weakened when the deal is a tender offer or a full ownership acquisition. In sum, we suggest that premiums paid will benefit the acquiring firm’s immediate stock returns when investors perceived that the acquiring firm is able, and about to take a chance on an industrial turning point. Despite that a tender offer will significantly weaken the positive effect of premiums paid.
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author2 |
Chiung-Hui Tseng |
author_facet |
Chiung-Hui Tseng Tzu-HsiangChou 周子翔 |
author |
Tzu-HsiangChou 周子翔 |
spellingShingle |
Tzu-HsiangChou 周子翔 Acquisition Premium and Acquirer Abnormal Returns to Acquisition Announcement:Evidence from China Large Outbound Investment |
author_sort |
Tzu-HsiangChou |
title |
Acquisition Premium and Acquirer Abnormal Returns to Acquisition Announcement:Evidence from China Large Outbound Investment |
title_short |
Acquisition Premium and Acquirer Abnormal Returns to Acquisition Announcement:Evidence from China Large Outbound Investment |
title_full |
Acquisition Premium and Acquirer Abnormal Returns to Acquisition Announcement:Evidence from China Large Outbound Investment |
title_fullStr |
Acquisition Premium and Acquirer Abnormal Returns to Acquisition Announcement:Evidence from China Large Outbound Investment |
title_full_unstemmed |
Acquisition Premium and Acquirer Abnormal Returns to Acquisition Announcement:Evidence from China Large Outbound Investment |
title_sort |
acquisition premium and acquirer abnormal returns to acquisition announcement:evidence from china large outbound investment |
publishDate |
2014 |
url |
http://ndltd.ncl.edu.tw/handle/5r492g |
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