Song, DiDiSongSu, JunJunSuYang, ChaoChaoYangDr. SHEN Na, NellNellDr. SHEN Na2021-02-162021-02-162019Pacific-Basin Finance Journal, 2019, vol. 57, article no. 101052.0927-538Xhttp://hdl.handle.net/20.500.11861/6276We find that performance commitment provisions in Chinese acquisitions show positive economic outcomes measured by improved abnormal returns and lower market crash risk using hand-collected data. We further illustrate that the positive effects of performance commitment contracts are alleviated when TMTs have a high level of self-interests. We also investigate that, regulatory adjustments actually worsen the positive effect of performance commitment in acquisitions. The fact shows the short-termism effect of Chinese capital market imposed by the regulatory changing risk. Our study complements the earnout literature and show distinctive Chinese characteristics.enPeer Reviewed Journal Article10.1016/j.pacfin.2018.08.006