%0 Journal Article %A Tao, Fang %A Liu, Xiaohui %A Gao, Lan %A Xia, Enjun %D 2016 %T Do cross-border mergers and acquisitions increase short-term market performance? The case of Chinese firms %U https://repository.lboro.ac.uk/articles/journal_contribution/Do_cross-border_mergers_and_acquisitions_increase_short-term_market_performance_The_case_of_Chinese_firms/9505118 %2 https://repository.lboro.ac.uk/ndownloader/files/17131964 %K Chinese firms %K Cross-border mergers and acquisitions %K Stock market reactions %K Political risk %K Ownership %K Business and Management not elsewhere classified %X Despite the new momentum in cross-border mergers and acquisitions (M&As) by emerging market firms, we have a limited understanding of the impact of these activities. Drawing on signalling theory and the institution-based view, this paper examines the extent of stock market reactions to the announcement of cross-border M&A deals, based on an event study of a sample of Chinese firms during the period 2000– 2012. The findings indicate that the announcement of cross-border M&As results in a positive stock market reaction; this effect is more significant in the mainland Chinese stock markets (Shanghai and Shenzhen) than that in the Hong Kong market. The shareholders of Chinese firms that acquire a target firm in a host country with a low level of political risk gain higher cumulative abnormal returns than those firms targeting companies in countries with a high level of political risk. The shareholders of Chinese state-owned enterprises experience lower abnormal returns compared with those of Chinese privately owned firms when engaging in cross-border M&A deals. %I Loughborough University