DO ACQUIRING FIRMS BENEFIT FROM MERGERS AND ACQUISITIONS?

In a sample of 310 Chinese acquisitions between 2000 and 2007, five types of acquisitions have systematically lower and predominantly negative stock returns during previous 30 days of the first announcement date. It means that the managers of acquirers would like to execute an acquisition when the stock of their firms overpriced. The performance of financial indicators that almost all industries have lower performance for a long time, and the capital structure turns to worse during the estimation periods It means that the capital used in mergers and acquisitions from liability is higher than the capital from asset, and the financial risk of acquirers will increase after the acquisition transactions.