|Author:||Jin, Zhi Gang|
|Title:||An analytical study on the mergers and acquisitions of Chinese real estate developers|
|Subject:||Consolidation and merger of corporations -- China.|
Real estate business -- China.
Hong Kong Polytechnic University -- Dissertations
|Department:||Department of Building and Real Estate|
|Pages:||xvii, 244 p. : ill. ; 30 cm.|
|Abstract:||As the biggest emerging market, China is experiencing a boom of mergers and acquisitions (M&As, hereafter) in all types of business enterprise. The Chinese real estate industry is one of the most active industries involved in this M&As wave. After 30 years of fast growth the industry is experiencing structural change and adjustment, with M&As becoming one of most important strategies adopted by Chinese real estate developers to ensure their survival and competitiveness. However, few studies have addressed these significant M&As issues in the Chinese real estate industry. The primary aim of this research is to investigate the performance of Chinese real estate developers' M&As, and to identify the factors affecting the performance. To achieve these research aims, the research focuses on two specific issues: I. Performance evaluation of developers' M&As: Measuring the performance of developers' M&As is to investigate whether such M&As enhanced value or not for the developers involved. This study adopts event study to analyze the performance of developers' M&As firstly. To avoid the limitation of event studies and provide a comparison, therefor this study presents a hybrid data envelopment analysis (DEA) and Malmquist total factor productivity (TFP) indices method to evaluate the efficiency and productivity changes of developers' M&As. Regarding to the result of event studies, the long-term performances of acquirers are generally decreases on average after acquisitions. And, the results of the DEA method show that developers' M&As are associated with: Some technology progressive are achieved in short-term after M&As. All other efficiencies are decreased in long-term after M&As. However, there is no evidence that developers achieve any short or long term scale efficiency improvements after M&As. Through comparison analysis of these two methods, it illustrates that the DEA method proposed in this study is suitable to be used to measure the performance of M&As. II. Analysis of factors affecting the performance of M&As: The relationship between factors and M&As performance are identified by regression analysis. Some factors obey the general explanation of M&As theories. Other factors reflect the specific characteristics of the Chinese real estate industry. Key factors include the following: The long-term performance of related M&As are better than that of the diversified M&As; Growth acquirers obtained better performance than value acquirers; Acquirers can obtain better performance when taking over a target with a higher level of cash; Target's profitability as measured by the target's returns on equity and return on assets have a positive effect on the M&As long-term performance; and Acquirer's cash and growth opportunities are positively correlated with the long-term performance of the merged enterprise. This study concludes that M&As are an important strategy for developers to achieve growth, improve efficiency, and expand to new market sectors. Therefore, understanding the mechanism of M&A based in the real estate industry context and applying them carefully in the process of M&As deals from the decision-making, through deal execution to post-acquisition can improve the performance and mitigate the risk in future M&As deals for Chinese developers.|
Files in This Item:
|b26160560.pdf||For PolyU Staff & Students||2.54 MB||Adobe PDF||View/Open|
|19582.pdf||For All Users (Non-printable)||2.56 MB||Adobe PDF||View/Open|
As a bona fide Library user, I declare that:
- I will abide by the rules and legal ordinances governing copyright regarding the use of the Database.
- I will use the Database for the purpose of my research or private study only and not for circulation or further reproduction or any other purpose.
- I agree to indemnify and hold the University harmless from and against any loss, damage, cost, liability or expenses arising from copyright infringement or unauthorized usage.
By downloading any item(s) listed above, you acknowledge that you have read and understood the copyright undertaking as stated above, and agree to be bound by all of its terms.
Please use this identifier to cite or link to this item: