SUCCESS OF CROSS-BORDER MERGERS & ACQUISITIONS IN THE LONG-TERM

Open Access
Author:
Yan, Jun
Area of Honors:
Finance
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Jingzhi Huang, Thesis Supervisor
  • James Alan Miles, Honors Advisor
Keywords:
  • long-term
  • Cross-border
  • M&A
Abstract:
This thesis is an empirical analysis of recent notable cross-border mergers and acquisitions that took place between Chinese and US firms. I study the acquirers’ stock price movements two years prior to and after the announcements, examine changes in selected financial ratios before and after announcements, and compare the performances of such cross-border M&As with domestic ones of similar characteristics. I hypothesize that cross-border M&A practices will outperform their domestic counterparts in terms of shareholder value creation for the acquirers in the long-term. The results provide a number of insights about the effectiveness of cross-border M&As and help businesses in US and China making better decisions when facing issues regarding taking over or merging with a foreign entity.