Acquiring Capacity and Acquiring Behavior of Chinese Firms
China's short stock market history has already seen three merger waves, yet little is known of the performance drivers of acquirers. Using an acquirer's announced target value as the proxy of the firm's acquiring capacity, the link between that and its operational and/or financial conditions was investigated. Cash reserve ratio was significant in determining capacity: a firm with a higher cash ratio will, on average, take a larger target firm in both absolute value and relative measure. A larger acquirer size is associated with a larger takeover size, but a lesser target ratio is relative to the size of the acquirer. Firms' debt and profitability ratios do not explain the target size.
Volume (Year): 12 (2009)
Issue (Month): 4 (Spring)
|Contact details of provider:|| Postal: 24255 Pacific Coast Hwy, Malibu CA|
Web page: http://bschool.pepperdine.edu/jef
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:pep:journl:v:12:y:2009:i:4:p:87-104. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Craig Everett)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.