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Nature of Property Right, Free Cash Flow and Goodwill of M&A

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Proceedings of the Fourteenth International Conference on Management Science and Engineering Management (ICMSEM 2020)

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 1190))

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Abstract

Chinese economy is shifting from a stage of rapid growth to a stage of high-quality development. M&A has become an important method to achieve extensive growth for Chinese companies. This paper takes Chinese listed companies on the Shanghai Stock Exchange and the Shenzhen Stock Exchange from 2007 to 2017 as research sample, and studies the relationship between free cash flow and goodwill, as well as the moderating effect of nature of property right on the relationship between free cash flow and goodwill in M&A. The research shows: first, free cash flow is significantly positive correlated to goodwill of M&A; second, compared with non-state-owned companies, the free cash flow has a weaker impact on the goodwill of M&A in state-owned companies.

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Author information

Authors and Affiliations

  1. Business School, Sichuan University, Chengdu, 610064, People’s Republic of China

    Lan Wu, Lingli Yu & Liqin Mao

Authors
  1. Lan Wu
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  2. Lingli Yu
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  3. Liqin Mao
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Corresponding author

Correspondence to Lingli Yu .

Editor information

Editors and Affiliations

  1. Business School, Sichuan University, Chengdu, China

    Jiuping Xu

  2. Academy of Sciences of Moldova, Chisinau, Moldova

    Gheorghe Duca

  3. Faculty of Math and Science, Brock University, Hamilton, ON, Canada

    Syed Ejaz Ahmed

  4. ETSI Industriales de Ciudad Real, University of Castile-La Mancha (UCLM), Ciudad Real, Spain

    Fausto Pedro García Márquez

  5. Institute of Control Systems, Azerbaijan Natl Academy of Sciences, Baku, Azerbaijan

    Asaf Hajiyev

Appendix

Appendix

Table 5. Variable definitions
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© 2020 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG

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Wu, L., Yu, L., Mao, L. (2020). Nature of Property Right, Free Cash Flow and Goodwill of M&A. In: Xu, J., Duca, G., Ahmed, S., García Márquez, F., Hajiyev, A. (eds) Proceedings of the Fourteenth International Conference on Management Science and Engineering Management. ICMSEM 2020. Advances in Intelligent Systems and Computing, vol 1190. Springer, Cham. https://doi.org/10.1007/978-3-030-49829-0_15

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