An empirical study of characteristics of takeover targets from Chinese capital Market

This paper constructs a multi-variables logistic model to study characteristics of takeover targets from Chinese capital Market. The theoretical model indicates that Chinese takeover has specific characteristics. The empirical results show that the firm size, net operating loss of target firm and the ownership structure could affect the takeover decision. Specially, the larger proportion of first shareholding and higher concentration are useful to achieve company takeover. However, the effect of tax preference on takeover is not obvious, because the income tax preferences are widespread for Chinese listed companies.