Date Added: Aug 2010
This paper investigates whether stock markets view Chinese OMAs as increasing shareholder wealth. The subject is of interest given the influential role that the government plays in Chinese firms' overseas activities, and the fact that the government may have objectives other than maximization of shareholder wealth. The authors examine 145 OMAs by Chinese acquiring firms over the year 1994-2008. They find some evidence that markets positively responded to news of Chinese OMAs. However, they also find that markets responded less favorably after China implemented its Go Global policy encouraging overseas investment.