Cross-border mergers and acquisitions in china: a test of the free cash flow hypothesis

Yane Chandera, Lukas Setia-Atmaja (Prasetiya Mulya Business School, 2014)

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 is likely to be violated. The study proves Chinese

cross- border acquisitions result in positive abnormal returns which is consistent with synergy

hypothesis. The amount of bidders? free cash flow is also found to be marginally but positively associated

with shareholders return which is consistent with Myers and Majluf?s pecking order hypothesis

but unsupportive of Jensen?s free cash flow hypothesis.

No. Panggil :	AJ-Pdf
Entri utama-Nama orang :	Yane Chandera, author


Entri tambahan-Nama orang :	Lukas Setia Atmaja, author


Subjek :	Economics
Penerbitan :	[Place of publication not identified]: Prasetiya Mulya Business School, 2014

Sumber Pengatalogan :	LibUI eng rda
ISSN :	23563818
Majalah/Jurnal :	Indonesian Capital Market Review
Volume :	Vol No 2 July 2014 87-97
Tipe Konten :	text
Tipe Media :	computer
Tipe Carrier :	online resource
Akses Elektronik :	http://journal.ui.ac.id/index.php/icmr/article/view/3591
Institusi Pemilik :	Universitas Indonesia
Lokasi :

No. Panggil	No. Barkod	Ketersediaan
AJ-Pdf	03-20-919241344	TERSEDIA

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