Keywords
overseas mergers and acquisitions, event research method, market effect
Abstract
In this paper,the cases of Bright Dairy's acquisition of New Zealand's Synlait Milk and Israel's Tnuva Group were selected,and the market effects of the two overseas M&A were compared from the perspective of shareholder wealth using the event study method.The research shows that:during the acquisition of Synlait Milk,Bright Dairy's stock cumulative abnormal return rate is positive and stable,which produces positive market effect;during the acquisition of Tnuva Group,Bright Dairy's stock cumulative abnormal return rate is volatile and negative,resulting in negative market effect.However,whether the value of the target enterprise can be accurately evaluated,the choice of financing methods of M&A and the quality of M&A information disclosure are the main factors affecting the effect of overseas M&A market.
DOI
10.16315/j.stm.2020.01.009
Recommended Citation
WANG, Wei; WAN, Zhi-min; and WANG, Wan-ting
(2020)
"Research on market effect of bright dairy industry overseas M&A and its influencing factors,"
Journal of Science and Technology Management: Vol. 22:
Iss.
1, Article 6.
DOI: 10.16315/j.stm.2020.01.009
Available at:
https://jstm.researchcommons.org/journal/vol22/iss1/6
