Download pdf
Analysis of Hostile Merger: Evidence from Bao-Wan Controversy
- 1 Department of Finance, University of Western Ontario
- 2 Suzhou Institute of Technology, Jiangsu University of Science and Technology
* Author to whom correspondence should be addressed.
Abstract
As a matter of fact, with the rapid development of enterprises in China, the merger is indispensable during the boosting of the economy, but many of them are not smooth, both sides are not satisfied, and even contradictions. On this basis, through the analysis of the case of Baowan dispute, this study obtains the impact on the acquireee when a hostile takeover occurs. According to the analysis, it is easy to find that hostile takeover will affect the development of the company, but it will show a slight upward trend in the early stage of the takeover. At the same time, the implications as well as suggestions will be proposed based on the evalutions. To sum up, the study can help the company to anticipate the impact of the acquisition and anti-acquisition, so as to facilitate the company to make preparation and prevention in advance. Overall, these results shed light on guiding further exploration of hostile merger analysis.
Keywords
Hostile Merger, M&A, Bao-Wan controversy, Finance analysis
[1]. Cartwright, S., and Schoenberg, R. (2006). Thirty years of mergers and acquisitions research: Recent advances and future opportunities. British journal of management, 17(S1), S1-S5.
[2]. Chengtian Finance. (2023). The concept of corporate mergers and acquisitions. Retrieved from: https://www.citygassafe.com/article/17178.html
[3]. Kumar, S., and Bansal, L.K. (2008). The impact of mergers and acquisitions on corporate performance in India. Management Decision, 46(10), 1531-1543.
[4]. Oriental Fortune. (2012). Hostile takeover, 2012,01,31. Retrieved from: https://baike.eastmoney.com/item/%E6%81%B6%E6%84%8F%E6%94%B6%E8%B4% AD
[5]. Conyon, M.J., Girma, S., Thompson, S., and Wright, P.W. (2001). Do hostile mergers destroy jobs?. Journal of Economic Behavior and Organization, 45(4), 427-440.
[6]. Ebina, T., Kumakura, Y., and Nishide, K. (2022). Hostile takeovers or friendly mergers? Real options analysis. Journal of Corporate Finance, 77, 102292.
[7]. Admin. (2013). How to distinguish between hostile acquisitions and friendly acquisitions. Retrieved from: http://www.0755lvshi.cn/binggoulvshi/20130916671.html
[8]. Jiang, Z. (2023). Analysis of the motivations, paths and economic consequences of stakeholder participation in control struggle.Yunnan University of Finance and Economics.
[9]. Qi, Y. (2021). How to prevent the risk of takeover and anti-takeover by the original shareholders of listed companies: A case study of "Baowan dispute"[J].Guangxi Quality Supervision Herald, 6, 96-101.
[10]. Wu, Y. (2023). Research on anti-takeover strategy of listed companies in China[D].Central University of Finance and Economics.
[11]. Zhu, Y. (2020). Research on anti-hostile takeover strategy of listed companies. Nanjing Agricultural University.
[12]. Xu, G. (2015) How big is the macro impact of stock market shocks.Retrieved from: https://finance.sina.cn/china/cjpl/2015-07-08/zl-ifxesftm9849667.d.html?from =wap
[13]. Papadakis, V.M. (2005). The role of broader context and the communication program in merger and acquisition implementation success. Management Decision, 43(2), 236-255.
[14]. China Capital Alliance. (2021). Interpretation: Confrontation Strategies of Hostile Takeovers and Anti-takeovers. Retrieved from: https://www.sohu.com/a/465613080_270543
Cite this article
Li,B.;Xiang,F. (2024). Analysis of Hostile Merger: Evidence from Bao-Wan Controversy. Advances in Economics, Management and Political Sciences,71,269-276.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 3rd International Conference on Business and Policy Studies
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).