Mergers and acquisitions (M&A) of corporations are important economic events. The core function of M&A is to improve the allocation of economic resources. The value added is a standard way to evaluate M&A. Therefore, value added is the most important subject in the study of mergers and acquisitions. It is even more important to make a systematic study in this field in the Chinese market, since it is both emerging and transforming.Based on a comprehensive review and overview of the main theories of corporate M&A, this dissertation focuses on the premise of value creation in corporate mergers and acquisitions: the sources of value creation and the evaluation of value creation. It specifically examines the significant impact of China's unique institutional factors on mergers and acquisitions by Chinese listed companies and the resulting outcomes in terms of value creation.
The key conclusions include the following: the governance structure of listed companies controlled by insiders leads to the failure of external subsidy mechanisms that would otherwise promote efficient mergers and acquisitions; government interests determine the decision-making of management in mergers and acquisitions; and the limited number of listed companies restricts the supply of acquisition targets. These factors significantly influence the effectiveness and outcomes of mergers and acquisitions in China.
In the empirical research section, this dissertation employs methods such as event study, financial analysis, and industry lifecycle analysis to empirically analyze the value creation in mergers and acquisitions by Chinese listed companies. The main findings include the limited positive returns brought to shareholders of both the target and acquiring companies at the micro level. Most mergers and acquisitions by listed companies have not achieved significant value creation. At the macro level, there is no clear evidence of promoting macro effects such as optimizing industrial structure or optimizing resource allocation through mergers and acquisitions by Chinese listed companies.
Overall, the dissertation explores the theoretical framework of corporate mergers and acquisitions and value creation, examines the institutional factors impacting mergers and acquisitions in China, and conducts empirical analysis on the value creation of mergers and acquisitions by Chinese listed companies. The findings indicate that mergers and acquisitions in China do not consistently lead to significant value creation at both micro and macro levels. / Business Administration/Finance
| Identifer | oai:union.ndltd.org:TEMPLE/oai:scholarshare.temple.edu:20.500.12613/10208 |
| Date | 05 1900 |
| Creators | Zhang, Qingsheng |
| Contributors | Naveen, Lalitha, Rytchkov, Oleg, Gao Bakshi, Xiaohui, Tang, Cheng Yong |
| Publisher | Temple University. Libraries |
| Source Sets | Temple University |
| Language | English |
| Detected Language | English |
| Type | Thesis/Dissertation, Text |
| Format | 112 pages |
| Rights | IN COPYRIGHT- This Rights Statement can be used for an Item that is in copyright. Using this statement implies that the organization making this Item available has determined that the Item is in copyright and either is the rights-holder, has obtained permission from the rights-holder(s) to make their Work(s) available, or makes the Item available under an exception or limitation to copyright (including Fair Use) that entitles it to make the Item available., http://rightsstatements.org/vocab/InC/1.0/ |
| Relation | http://dx.doi.org/10.34944/dspace/10170, Theses and Dissertations |
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