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

  • Lan Wu
  • Lingli YuEmail author
  • Liqin Mao
Conference paper
  • 28 Downloads
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 1190)

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.

Keywords

Free cash flow Goodwill Property rights 

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Copyright information

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

Authors and Affiliations

  1. 1.Business SchoolSichuan UniversityChengduPeople’s Republic of China

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