Research Article

Optimal Decision-Making in Chinese Cross-Border Mergers and Acquisitions: A Perspective of Overbidding

Table 5

Summary statistics.

VariablesMinP25MeanMedianP75MaxSt. dev

Bidder’s CAR−0.2308−0.01560.009200.02670.42470.0662
Probability of acquisition success0.16460.61690.71560.74920.85310.97130.1783
Bidder’s profit−0.0857−0.01020.0084700.01460.27440.0492
Premium−0.00001−0.0000120.42729.35E-70.38165.83340.9132

Table 5 reports the summary statistics of three main variables in SUR regression models (3) and (4). The sample size comprised 346 Chinese completed CBMAs. Bidder’s CAR measures the bidder’s abnormal returns in the [−1, +1] window around the CBMA announcement. The probability of acquisition success is the predicted probability of transaction completion. The bidder’s profit is measured as the bidder’s CAR is scaled by the estimated probability of success. Premium denotes the percentage of excess transaction deal value over the target’s market value of equity relative to the target’s market value of equity.