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Cross-Border Mergers And Acquisitions In China: A Test Of The Free Cash Flow Hypothesis, Yane Chandera, Lukas Setia Atmaja
Cross-Border Mergers And Acquisitions In China: A Test Of The Free Cash Flow Hypothesis, Yane Chandera, Lukas Setia Atmaja
The Indonesian Capital Market Review
This research investigates whether Chinese cross-border investments have positive impact on shareholders wealth and whether the amount of bidders’ free cash flow influences the shareholder returns resulted from the acquisitions. The sample is based on 77 top Chinese cross-border investments during the years 2005-2009 with each deal value of minimum US$100 million. The assessments of acquisition abnormal returns are based on the event study methodology (Brown & Warner, 1985). Cross-sectional regression analysis is used to determine the bidding firms factors which significantly affect the returns. Factors are examined using OLS with White’s heteroscedasticity-corrected standard errors, since the assumption of homoscedasticity …
Chinese Economic Activities In Sub Saharan Africa: A Substitute For Europe?, Ineke Keers, Bartjan J. W. Pennink Dr.
Chinese Economic Activities In Sub Saharan Africa: A Substitute For Europe?, Ineke Keers, Bartjan J. W. Pennink Dr.
The South East Asian Journal of Management
This paper aims to investigate if the Chinese economic ties with Sub Saharan Africa serve as a substitute for this existing European-African relationship. Three types of economic activities are studied to determine a possible substitution effect: 1) trade (imports and exports) 2) foreign direct investment (FDI) flows; and 3) development aid from China and the European Union towards six African countries. Because natural resources, especially oil, appear to be a driver for Sino-African trade this study focuses on oil-importing and oil-exporting African countries. The group of oil-importing African countries is formed by South Africa, Ghana, and Kenya. The oil-producing countries …
Industrial Diversification And Shareholders' Value In China: The Case Of Shanghai Listed Manucfaturing Firms, Henk Von Eije, Jiong Jin
Industrial Diversification And Shareholders' Value In China: The Case Of Shanghai Listed Manucfaturing Firms, Henk Von Eije, Jiong Jin
The South East Asian Journal of Management
The fast growing economy and institutional and economic reforms made the Chinese equity markets the third largest in Asia. This leads to strategies of industrial diversification within Chinese firms. Financial theory suggests that industrial diversification may have advantages in emerging markets, because conglomerates are better able to cope with market imperfections than focused firms. Moreover, diversification through investing in many shares may be costly in imperfect markets. Negative effects of diversification can be found if hubris generates too large take-over premiums or if managers consume perks related to company size. Also, tunneling and propping may reduce company value. We show …