M&A Short-Term Performance Based on Elman Neural Network Model: Evidence from 2006 to 2019 in China

Based on the event study method, this paper conducts the analysis on the short-term performance of 1302 major mergers and acquisitions (M&A) in China from 2006 to 2019 and takes the cumulative abnormal return (CAR) as the measurement index. After comparing the five abnormal return (AR) calculati...

Full description

Saved in:
Bibliographic Details
Main Authors: Ming Xiao, Xionghui Yang, Ge Li
Format: Article
Language:English
Published: Wiley 2020-01-01
Series:Complexity
Online Access:http://dx.doi.org/10.1155/2020/8811273
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1832568493599358976
author Ming Xiao
Xionghui Yang
Ge Li
author_facet Ming Xiao
Xionghui Yang
Ge Li
author_sort Ming Xiao
collection DOAJ
description Based on the event study method, this paper conducts the analysis on the short-term performance of 1302 major mergers and acquisitions (M&A) in China from 2006 to 2019 and takes the cumulative abnormal return (CAR) as the measurement index. After comparing the five abnormal return (AR) calculation models, it is found that the commonly used market model method and the market adjustment method have statistical defects while the Elman feedback neural network model is capable of good nonlinear prediction ability. The study shows that M&A can create considerable short-term performance for Chinese listed company shareholders. The CAR in window period reached 14.45% with a downward trend, which is the win-win result achieved through the cooperation between multiple parties and individuals driven by their respective rights and interests in the current macro-microeconomic environment in China.
format Article
id doaj-art-479e35de9eaa4c0192213d1a6e5f39da
institution Kabale University
issn 1076-2787
1099-0526
language English
publishDate 2020-01-01
publisher Wiley
record_format Article
series Complexity
spelling doaj-art-479e35de9eaa4c0192213d1a6e5f39da2025-02-03T00:58:51ZengWileyComplexity1076-27871099-05262020-01-01202010.1155/2020/88112738811273M&A Short-Term Performance Based on Elman Neural Network Model: Evidence from 2006 to 2019 in ChinaMing Xiao0Xionghui Yang1Ge Li2School of Economics and Management, University of Science and Technology Beijing, Xueyuan Road No. 30, Haidian District, Beijing 100083, ChinaSchool of Economics and Management, University of Science and Technology Beijing, Xueyuan Road No. 30, Haidian District, Beijing 100083, ChinaSchool of Economics and Management, University of Science and Technology Beijing, Xueyuan Road No. 30, Haidian District, Beijing 100083, ChinaBased on the event study method, this paper conducts the analysis on the short-term performance of 1302 major mergers and acquisitions (M&A) in China from 2006 to 2019 and takes the cumulative abnormal return (CAR) as the measurement index. After comparing the five abnormal return (AR) calculation models, it is found that the commonly used market model method and the market adjustment method have statistical defects while the Elman feedback neural network model is capable of good nonlinear prediction ability. The study shows that M&A can create considerable short-term performance for Chinese listed company shareholders. The CAR in window period reached 14.45% with a downward trend, which is the win-win result achieved through the cooperation between multiple parties and individuals driven by their respective rights and interests in the current macro-microeconomic environment in China.http://dx.doi.org/10.1155/2020/8811273
spellingShingle Ming Xiao
Xionghui Yang
Ge Li
M&A Short-Term Performance Based on Elman Neural Network Model: Evidence from 2006 to 2019 in China
Complexity
title M&A Short-Term Performance Based on Elman Neural Network Model: Evidence from 2006 to 2019 in China
title_full M&A Short-Term Performance Based on Elman Neural Network Model: Evidence from 2006 to 2019 in China
title_fullStr M&A Short-Term Performance Based on Elman Neural Network Model: Evidence from 2006 to 2019 in China
title_full_unstemmed M&A Short-Term Performance Based on Elman Neural Network Model: Evidence from 2006 to 2019 in China
title_short M&A Short-Term Performance Based on Elman Neural Network Model: Evidence from 2006 to 2019 in China
title_sort m a short term performance based on elman neural network model evidence from 2006 to 2019 in china
url http://dx.doi.org/10.1155/2020/8811273
work_keys_str_mv AT mingxiao mashorttermperformancebasedonelmanneuralnetworkmodelevidencefrom2006to2019inchina
AT xionghuiyang mashorttermperformancebasedonelmanneuralnetworkmodelevidencefrom2006to2019inchina
AT geli mashorttermperformancebasedonelmanneuralnetworkmodelevidencefrom2006to2019inchina