Professor Michael Guo jie.guo@durham.ac.uk
Professor
We examine the extent to which managerial overconfidence creates value to acquirers in successful M&As undertaken by Chinese listed firms in the period of 20062012. The empirical results show that Chinese acquirers gain value in both the shortrun and the longrun after the M&A announcement. Our study provides new evidence that the market responds favorably to M&A deals undertaken by acquirers with more managerial overconfidence in both the short run and the long run. Our multivariate analyses, however, show that managerial overconfidence has a minimal role in explaining the stock price movement. In addition, we find that firm size is an important determinant for the relationship between overconfidence and market reaction to merger deals. Taken together, we conclude that managerial overconfidence has little effect in driving merger and acquisition deals in China.
Guo, M., Liu, J., He, Q., & Xin, J. (2020). Managerial Overconfidence and M&A Performance: Evidence from China. International Journal of Banking, Accounting and Finance, 11(3), 342-360. https://doi.org/10.1504/ijbaaf.2020.10028269
Journal Article Type | Article |
---|---|
Acceptance Date | Oct 1, 2018 |
Publication Date | 2020 |
Deposit Date | Oct 8, 2018 |
Publicly Available Date | Apr 7, 2021 |
Journal | International Journal of Banking, Accounting and Finance |
Print ISSN | 1755-3830 |
Electronic ISSN | 1755-3849 |
Publisher | Inderscience |
Peer Reviewed | Peer Reviewed |
Volume | 11 |
Issue | 3 |
Pages | 342-360 |
DOI | https://doi.org/10.1504/ijbaaf.2020.10028269 |
Keywords | Mergers and Acquisitions; Market Performance; Managerial Overconfidence; Chinese Market |
Public URL | https://durham-repository.worktribe.com/output/1317375 |
Accepted Journal Article
(562 Kb)
PDF
Institutional ownership and corporate greenhouse gas emissions: The evidence from China
(2023)
Journal Article
Does corporate ESG create value? New evidence from M&As in China
(2022)
Journal Article
What Drives Individual Investors in the Bear Market?
(2022)
Journal Article
The Logic of Control Arrangement of Acting-in-Concert Agreements
(2021)
Journal Article
About Durham Research Online (DRO)
Administrator e-mail: dro.admin@durham.ac.uk
This application uses the following open-source libraries:
Apache License Version 2.0 (http://www.apache.org/licenses/)
Apache License Version 2.0 (http://www.apache.org/licenses/)
SIL OFL 1.1 (http://scripts.sil.org/OFL)
MIT License (http://opensource.org/licenses/mit-license.html)
CC BY 3.0 ( http://creativecommons.org/licenses/by/3.0/)
Powered by Worktribe © 2025
Advanced Search