Study of the effect of M&A on real estate industry firms' performance

Zhigang Jin, Vera Li, Heng Li, Martin Skitmore, Hongqin Fan

Research output: Chapter in book / Conference proceedingConference article published in proceeding or bookAcademic researchpeer-review

Abstract

This paper proposes to adopt data envelopment analysis (DEA) based on Malmquist total factor productivity (TFP) indices methods to evaluate the effect of mergers and acquisitions (M&As) on acquirers in short-term and long-term windows. Based on analysis of 32 M&A deals conducted by Chinese real estate firms from 2000-2011, the study results demonstrate that the effect of M&A on developers' performance is positive. Through M&A, the developers' Malmquist TFP experienced a steady growth; their technology had noticeable progress immediately after acquisition; and their technical efficiency suffered a slight decrease in the short-term after acquisition, but then achieved a marked increase in the long-term with realization of integration and synergy. However, there is no evidence that the real estate firms have achieved scale efficiency improvement after M&A in either short-term or long-term.
Original languageEnglish
Title of host publicationICCREM 2013
Subtitle of host publicationConstruction and Operation in the Context of Sustainability - Proceedings of the 2013 International Conference on Construction and Real Estate Management
Pages797-805
Number of pages9
DOIs
Publication statusPublished - 11 Dec 2013
Event2013 International Conference on Construction and Real Estate Management: Construction and Operation in the Context of Sustainability, ICCREM 2013 - Karlsruhe, Germany
Duration: 10 Oct 201311 Oct 2013

Conference

Conference2013 International Conference on Construction and Real Estate Management: Construction and Operation in the Context of Sustainability, ICCREM 2013
CountryGermany
CityKarlsruhe
Period10/10/1311/10/13

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Building and Construction

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