Comparative research on performance of cross-border mergers and acquisitions implemented by state-owned and private enterprises based on event study model and Fama-French three factor model

Abstract

This paper creatively applies Event Study Model and Fama-French Three Factor Model to research the differences in cross-border mergers and acquisitions (M&A) performance between Chinese state-owned enterprises and private enterprises Research findings demonstrate that cross-border M&A implemented by Chinese private enterprises show positive value. By contrast, the performance of cross-border M&A implemented by Chinese state-owned enterprises show negative value.

Keywords:

• M&A performance
• Event Study Model
• Fama-French Three Factor Model
• Private enterprises
• State-owned enterprises

Mathematics Subject Classification 2010:

• 91B26