Skip to main content

Firm characteristics, industry characteristics and acquisition strategy: An empirical study of Chinese listed firms


This paper studies 148 related and 169 unrelated acquisition cases conducted by Chinese listed firms from 2001 to 2004 and explores firm and industry characteristics of these firms prior to their acquisition. Results show that there are significant pre-acquisition differences between firms pursuing related acquisition and firms pursuing unrelated acquisition in terms of firm performance, business risk, firm size, proportion of state shares and degree of diversification profile. Except for differences in internal capital as represented by undistributed profit per share, there is no significant difference in other aspects of available resources and industry performance.


以 2001 年至 2004 年的我国上市公司中的 148 起相关并购事件和 169 起无关多元化并购事件为样本, 考察了相关并购公司以及无关多元化并购公司并购前的公司特征和行业特征。 研究发现: 相关并购的公司与无关多元化并购的公司并购前在公司绩效、 公司经营风险/公司规模、 国有股比例以及多元化状况方面存在显著差异, 而公司可利用资源中除了每股未分配利润所代表的内部资金之外, 其它资源以及行业绩效等方面不存在显著差异。


  1. Agrawal A, Jaffe J F, Mandelker G N (1992). The Post-merger performance of acquiring firms: A re-examination of an anomaly. Journal of Finance, 47: 1605–1621

    Article  Google Scholar 

  2. Amburgey T L, Miner A S (1992). Strategic momentum: The effects of repetitive, positional, and contextual momentum on merger activity. Strategic Management Journal, 13(5): 335–349

    Article  Google Scholar 

  3. Amihud Y, Lev B (1981). Risk reduction as a managerial motive for conglomerate mergers. Bell Journal of Economics, 12: 605–617

    Article  Google Scholar 

  4. Ansoff H I (1965). Corporate Strategy: An Analytic Approach to Business Policy for Growth and Expansion. New York: McGraw-Hill

    Google Scholar 

  5. Berger P G, Ofek E (1999). Causes and consequences of corporate refocusing programs. Review of Financial Studies, 12: 311–345

    Article  Google Scholar 

  6. Bettis R A, Hall W K (1982). Diversification strategy, accounting determined risk, and accounting determined return. Academy of Management Journal, 25: 254–264

    Article  Google Scholar 

  7. Chatterjee S, Wernerfelt B (1991). The link between resources and type of diversification: Theory and evidence. Strategic Management Journal, 12(1): 33–48

    Article  Google Scholar 

  8. Christensen H K, Montgomery C A (1981). Corporate economic performance: Diversification strategy vs. market structure. Strategic Management Journal, 2(4): 327–343

    Article  Google Scholar 

  9. Comment R, Gregg J (1995). Corporate focus and stock returns. Journal of Financial Economics, 37: 67–87

    Article  Google Scholar 

  10. Elgers P T, Clark J J (1980). Merger types and Stockholder returns: Additional evidence. Financial management, 9: 715–732

    Article  Google Scholar 

  11. Gregory A (1997). An examination of the long run performance of UK acquiring firms. Journal of Business Finance and Accounting, 24: 971–1002

    Article  Google Scholar 

  12. Hall E H Jr (1995). Corporate diversification and performance: An investigation of causality. Australian Journal of Management, 20(1): 25–42

    Article  Google Scholar 

  13. Jensen M C, Meckling W H (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, (3): 305–360

  14. Kahneman D, Tversky A (1979). Prospect theory: An analysis of decisions under risk. Econometrica, 47: 262–291

    Article  Google Scholar 

  15. Khanna T, Palepu K (2000). Is group affiliation profitable in emerging markets? An analysis of diversified Indian business groups. Journal of Finance, 55: 867–891

    Article  Google Scholar 

  16. Lubatkin M (1987). Merger strategies and stockholder value. Strategic Management Journal, 8(1): 39–53

    Article  Google Scholar 

  17. Park C (2003). Prior performance characters of related and unrelated acquisitions. Strategic Management Journal, 24: 471–480

    Article  Google Scholar 

  18. Singh H, Montgomery C A (1984). Corporate acquisitions and economic performance. Presented at National Academy of Management Meetings, Boston

  19. Sitkin S B, Pablo A L (1992) Reconceptualizing the determinants of risk behavior. Academy of Management Review, 17(1): 9–38

    Article  Google Scholar 

  20. Teece D J (1981). Internal organization and economic performance: An empirical analysis of the profitability of principal firms. The Journal of Industrial Economics, 30(2): 173–199

    Article  Google Scholar 

  21. Wiersema M F, Bantel K A (1992). Top management team demography and corporate strategic change. Academy of Management Journal, 35(1): 91–121

    Article  Google Scholar 

  22. 冯 根福, 吴 林江 (Feng Genfu, Wu Linjiang) (2000). 我国上市公司并购绩效的实证研究 (An empirical study on M&A performance of Chinese listed corporation). 经济研究, (1): 54–61, 68

  23. 姜 付秀 (Jiang Fuxiu) (2006). 我国上市公司多元化经营绩效的决定因素研究(Determinants of diversification by listed firms in China). 管理世界, (5): 128–135

  24. 金 天, 余 鹏翼 (Jin Tian, Yu Pengyi) (2005). 股权结构、 多元化经营与公司价值: 国内上市公司的证据检验 (Diversification and company performance: Empirical evidence from China’s public companies). 南开管理评论, 8(6): 80–84

    Google Scholar 

  25. 李 善民, 陈 玉罡 (Li Shanmin, Chen Yugang) (2002). 上市公司兼并与收购的财富效应 (Study on wealth effects of M&A of listed companies). 经济研究, (11): 27–35, 93

  26. 李 善民, 朱 滔 (Li Shanmin, Zhu Tao) (2006). 多元化并购能给股东创造价值吗?—兼论影响多元化并购长期绩效的因素(Can diversification create Value for shareholders?) 管理世界, (3): 129–137

  27. 李 善民, 曾 昭灶, 王 彩萍等 (Li Shanmin, Zeng Zhaozao, Wang Caiping) (2004). 上市公司并购绩效及其影响因素研究 (Study on the performance and the factors of M&A of Listed Companies). 世界经济, (9): 60–67

Download references

Author information



Corresponding author

Correspondence to Shanmin Li.

Additional information

Translated and revised from Guanli Shijie 管理世界 (Management World), 2007, (3): 130–137

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Li, S., Zhou, X. Firm characteristics, industry characteristics and acquisition strategy: An empirical study of Chinese listed firms. Front. Bus. Res. China 3, 224–241 (2009).

Download citation


  • firm performance
  • industry performance
  • acquisition type
  • diversification acquisition


  • 公司绩效
  • 行业绩效
  • 并购类型
  • 多元化并购