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THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.72, # 1, 2015, pp. 61-94

with diverse culture. Collins e al (2009) have examined a sample of S&P 500

companies and found out that the probability of cross- border acquisition is higher if

the company had prior international experience than only domestic.

According to the research conducted by Deloitte Touche (2009) regarding

Chinese markets, energy, mining and utilities sector prevails Chinese M&A deals

oversees. The results show transactions in energy sector comprises twenty nine

percent by volume and sixty five percent of total transaction value of all cross-

border deals from 2003 to 2009. Moreover, recent financial crisis created incentives

for Chinese companies to invest abroad, as foreign entities at that time easier to

acquire.

4.Methodology

The topic of value creation through M&A has been studied by researchers

coming from both: economic and business background. Different methods evolved

to measure the impact of a certain event on company‘s financial returns. The main

approaches of analyses have been framed by the researchers (Beitel and Schiereck

(2001)) are the following:

1.Dynamic efficiency studies

2.Performance analysis

3.Event studies

To measure and compare the shareholder wealth effects for our sample, this paper

follows the event study methodology. An event study measures the impact of a specific

event such as deal announcements, share repurchases, joint venture and etc. on the value

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