Does M&A Financing Affect Firm Performance under Different Ownership Types?
| Autor: | Xi Zhao, Xiaotong Niu, Grantley Taylor, Ying Han Fan, Jiaqi Chen |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
Geography
Planning and Development lcsh:TJ807-830 lcsh:Renewable energy sources ownership Management Monitoring Policy and Law financing method A performance ComputerApplications_MISCELLANEOUS 0502 economics and business Mergers and acquisitions Emerging markets China lcsh:Environmental sciences Sustainable development Finance lcsh:GE1-350 050208 finance sustainable development emerging markets Renewable Energy Sustainability and the Environment business.industry lcsh:Environmental effects of industries and plants 05 social sciences Equity (finance) Debt financing Large sample lcsh:TD194-195 Business 050203 business & management M& |
| Zdroj: | Sustainability, Vol 12, Iss 3078, p 3078 (2020) |
| ISSN: | 2071-1050 |
| Popis: | Mergers and acquisitions (M&A) are an essential way for enterprises to achieve sustainable development. As large sums of money are typically involved in M&A transactions, financing is a vital factor in outcomes. This study examines the relation between equity and debt financing of M&A on subsequent performance, and the effect of ownership (state-owned enterprises versus private-owned enterprises) on M&A performance in China. We are motivated to examine the relation between financing methods and M&A performance in China because the differences in ownership, resource availability and policy support by the government for many firms may affect subsequent performance. Using a large sample of Chinese A-share listed companies between 2009 and 2016, we find that equity-financed M&A transactions lead to significantly better performance than debt-financed transactions. Equity-financed M&A transactions of state-owned enterprises (SOEs) perform significantly better as compared to debt-financed M&A, whereas equity-financed M&A transactions of private-owned enterprises (POEs) have little effect on their performance. This study extends our insights into the relation between M&A financing types and firm performance under different ownership types in the context of emerging markets. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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