Economic policy uncertainty and mergers and acquisitions: Evidence from China

Sha, Yezhou; Kang, Chenlei; Wang, Zilong

doi:10.1016/j.econmod.2020.03.029

Cited by 112 publications

(35 citation statements)

References 47 publications

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“…This is potentially related to the preferential policies enjoyed by SOEs. Meanwhile this might be the results of certain unique features of M&A in the China market, as some M&A deals are characterised by government intervention and political support, especially for SOEs (Arnoldi & Muratova, 2019;Sha et al, 2020). The evidence also confirms the role of institutional investors in reducing information asymmetry, while finding that institutional investors in China do not accurately predict the authenticity of M&A rumours.…”

Section: Discussionmentioning

confidence: 90%

“…Bhabra and Huang (2013) suggest that the positive abnormal returns for Chinese acquirers are mainly associated with SOE acquirers. Empirical evidence proves that SOE acquirers outperform non-SOE acquirers in the short (Chi et al, 2011;Sha et al, 2020) and long term (Zhou et al, 2015).…”

Section: Mergers and Acquisitions In Chinamentioning

confidence: 89%

“…In China, large numbers of M&A transactions are characterised by government intervention and political support (Brockman et al, 2013). Meanwhile, SOE firms are actively involved in M&A transactions (Sha et al, 2020). Compared to the US and the Europe, M&A announcements in China tend to receive more market attention and create higher abnormal returns (Bhabra & Huang, 2013;Chi et al, 2011;Moeller et al, 2004;Sudarsanam & Mahate, 2003;Zhou et al, 2015).…”

Section: Mergers and Acquisitions In Chinamentioning

confidence: 99%

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Market reactions for targets of M&A rumours—evidence from China

Yang

Chen

2021

Economic Research-Ekonomska Istraživanja

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This paper investigates investors' reactions to takeover rumours in China's stock markets from 2004 to 2014. While we find prerumour price run-ups (abnormal returns) for merger and acquisition (M&A) targets, the pre-rumour market overreaction is significantly positive only for target firms that are state-owned enterprises (SOEs). There are no significant abnormal returns for M&A rumour targets over a 41-day event window (À20, þ20). Nonetheless, capital market reactions to true rumours are higher than reactions to false rumours, indicating that investors can typically distinguish between them. Finally, we document that while firms with higher institutional ownership have a higher probability of being the subject of false M&A rumours, rumoured targets with higher institutional ownership experience lower market reactions.

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Section: Discussionmentioning

confidence: 90%

Section: Mergers and Acquisitions In Chinamentioning

confidence: 89%

Section: Mergers and Acquisitions In Chinamentioning

confidence: 99%

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Market reactions for targets of M&A rumours—evidence from China

Yang

Chen

2021

Economic Research-Ekonomska Istraživanja

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“…The cumulative abnormal return (CAR) will be subsequently calculated by summing up abnormal returns over the event window period (Kothari & Warner, 2007;Sha et al, 2020):…”

Section: Methodsmentioning

confidence: 99%

CAN RAINMAKERS JUSTIFY THEIR PAY? THE ROLE OF INVESTMENT BANKS IN REIT M&AS

Zhang

Sun

Goh

et al. 2021

International Journal of Strategic Property Management

Self Cite

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This study explicitly rejects the prima facie proposition that the top-tier investment banks are capable of delivering supernormal value creation to the shareholders of a REIT acquirer in a corporate acquisition. Using the event study method, we find that REIT acquirers advised by market-leading investment banks suffer an average cumulative abnormal return of −4.41% following the M&A announcement, whereas REIT acquirers advised by non-top-tier investment banks only suffer an average cumulative abnormal return of −1.49%. The evidence shows that the contemporary practice of employing investment banks based on the prestige of the advisory firms could potentially result in value-destroying M&As for the REIT acquirers.

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“…The ability to produce hydrogen solely from wind energy through electrolysis has gotten a lot of attention around the world. Despite possessing a large amount of resources, Pakistan has made little attempt, which prompted the current study (Sha et al 2020).…”

Section: Wind Power Potential and Energy Securitymentioning

confidence: 99%

Assessing The Economic Viability And Fueling Capacity of Renewable Hydrogen: A Way Forward For Green Economic Performance And Policy Measures

Wu¹,

Zhai²,

Mu³

et al. 2021

Preprint

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Energy security and environmental measurements are incomplete without renewable energy therefore there is a dire need to explore new energy sources. Therefore, the aim of this study is to measure the wind power potential to generate the renewable hydrogen including its production and supply cost. We used first order eneginnering model and net present value to measure the levelized cost of wind generated renewable hydrogen by using the data source of Pakistan metorological department and State bank of Paksitan. Results shows that the use of surplus wind and renewable hydoregn energy for green economic production is suggested as an innovative project option for large-scale hydrogen use. The key annual running expenses for hydrogen are electricity and storage cost, which have a major impact on the costs of renwable hydrogen. Also, the results indicates that project has the potential to cut CO2 pollution by 139 million metric tons and raise revenue for wind power plants by 2998.52 million dollars. The renewable electrolyzer plants avoided CO2 at a rate of 24.9–36.9 $/ton under baseload service, relative to 44.3 $/ton for the benchmark. However, in the more practical mid-load situation, these plants have a significant benefit. Further, the wind generated renewable hydrogen deliver a 6–11% larger than annual rate of return than the standard CO2 catch plant due to their capacity to remain running and supply hydrogen to the consumer through periods of plentiful wind and heat. Also, the measured levelized output cost of hydrogen (LCOH) was 6.22$/kgH2 and for the PEC system, it was 8.43 $/kgH2. Finally, its mutually agreed consensus of the environmental scientist that integration of renewable energy is the way forward to increase energy security and environmental performance by ensuring uninterrupted clean and green energy. Further, this application has the potential to address Pakistan’s urgent issues of large-scale surplus wind and solar-generated energy, as well as rising enegry demand.

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Economic policy uncertainty and mergers and acquisitions: Evidence from China

Cited by 112 publications

References 47 publications

Market reactions for targets of M&A rumours—evidence from China

Market reactions for targets of M&A rumours—evidence from China

CAN RAINMAKERS JUSTIFY THEIR PAY? THE ROLE OF INVESTMENT BANKS IN REIT M&AS

Assessing The Economic Viability And Fueling Capacity of Renewable Hydrogen: A Way Forward For Green Economic Performance And Policy Measures

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