We study firms that go public through reverse mergers (RMs) versus initial public offerings (IPOs) in China. Using a manually assembled data set, we show that pre-listing RM firms are larger, more profitable, and less politically connected than pre-listing IPO firms. Chinese RM firms also have...

The study is aimed at the assessment of the effect of mergers and acquisitions on the fundamental value of acquiring companies in BRICS countries. The approach based on the residual income model was applied. The pre-acquisition expected fundamental value of the acquiring company and its realized...