Advances in Economics, Management and Political Sciences
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Proceedings of Finance in the Age of Environmental Risks and Sustainability - ICFTBA 2024
Series Vol. 94 , 14 June 2024
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Analysing the Motivation and Effect of Cross-border Mergers and Acquisitions: A Case Study of the Acquisition of YOUJIUSHIDAI by SHANGHAI ACE CO., LTD.
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Abstract
Under the background of globalisation and information technology revolution, cross-border mergers and acquisitions (M&A) have become a key strategy for corporate strategic transformation and market expansion. Taking the acquisition of YOUJIUSHIDAI by SACE as an example, this study adopts the methods of literature review, case study analysis and AMPS model to explore in depth the motives, effects and impacts of cross-border M&A on corporate performance. This study finds that although M&A enhances shareholder wealth in the short term, long-term profitability falls short of expectations, which is mainly limited by the lack of R&D capability and market alignment problems. This study emphasises the importance of synergies and points out that high-premium M&As may lead to goodwill impairment risk, thus affecting the financial status of the firms and the interests of shareholders, and puts forward suggestions to optimise M&A strategies and strengthen regulation, in order to protect the interests of small and medium-sized investors and to promote the healthy development of the capital market.
Keywords
Cross-border mergers and acquisitions, High premium mergers and acquisitions, shell listing, Synergy effect, Performance commitment
References
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of Finance in the Age of Environmental Risks and Sustainability - ICFTBA 2024
- ISBN (Print)
- 978-1-83558-487-3
- ISBN (Online)
- 978-1-83558-488-0
- Published Date
- 14 June 2024
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/94/2024OX0102
- Copyright
- 14 June 2024
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited