Shareholders' wealth of acquisition in China

This paper examines wealth effect of acquiring firm in China during 2001 similar to 2003. Different from previous research, our analysis indicates that acquirers experience more than 0.5% abnormal returns over days (-6, -1), while they suffer nearly 0.7% losses over days (0, + 8). Furthermore, accumulative abnormal returns (-6, -1) are positively related with relative size, structure of equity ownership and supervising environment. However, return on equity of acquirer has a negative influence on accumulative abnormal returns (0, +8).