2.2 Samples
Using the data of M & A of the real estate of listed companies from 2007 to 2008 after the share reform as sample, and make a few screening:
1. In order to avoid the contagion effect (the two events occur at the same time, we can not distinguish their effects) we should remove the company which in the estimation window and event window experienced more than a major event;
2. Removing samples which does not exist a 60 days transaction data before the event;
3. Excluding samples which do not have complete information about financial indicators, company code, notice of time, related information, the transaction amount from 2006 to 2008;
4. Excluding ST and PT companies After screening a total of 34 selected listed companies in the
real estate M & A events as samples. All data from the CCER and the GTA database and obtained by the order . 2.3 Variable Definitions M & A is a major decision-making process of companies, it
affected by many factors such as financing capacity, profitability, ownership structure, risk tolerance, asset properties, future vision and corporate governance. So We select the asset-liability ratio and the equity ratio as the representative indicators for the financing capacity, Tobin 'Q and ROE represents profitability, Proportion of outstanding shares represents ownership structure, total leverage represents risk tolerance, capital maintenance and appreciation represents future vision, management expense ratio represents agency costs, the proportion of total assets amount of the transaction represents the size of M & A, total assets turnover and equity turnover represents Operating capacity.
3.1 Market reaction
First calculate the AR and the CAR in the time window and the results obtained in Figure I. Volatility of AR can be seen from Figure I when it changes, It weakly meet the fluctuations in cluster. the day before the announcement there is a positive AR. although in a short-time continuing strong ,we can preliminary judge the market reaction to the M & A is active. Cumulative abnormal returns show a significant positive trend. Then we compared the different situations during the window of the CAR: From table II we can see that no matter what time CAR’s statistic is significant at the 5% level. Although it is negative in a period after the announcement, it matches the trend of CAR in Figure I. In [-7,6] CAR to the maximum, and [1,3] to the minimum. The above analysis shows that the market has an active response to the M&A, we may believe that that there is a income effect in short-term memory, initially.
2.3 Variable Definitions 后面为空格,应该转行。谢谢~