How Do Chinese Firms Perform Before and After Cross-Border Mergers and Acquisitions?

2019 ◽  
pp. 1-17 ◽  
Author(s):  
HaiYue Liu ◽  
YiXian Li ◽  
Rui Yang ◽  
XiaoPing Li
Keyword(s):  
Mergers And Acquisitions ◽  
Chinese Firms ◽  
Cross Border ◽  
Before And After

scholarly journals China's Cross-border Mergers and Acquisitions: A Contextual Distance Perspective

2016 ◽  
Vol 12 (3) ◽  
pp. 449-456 ◽  
Author(s):  
Jiatao Li ◽  
Guoguang Wan
Keyword(s):  
Mergers And Acquisitions ◽  
Host Country ◽  
Large Dataset ◽  
Chinese Firms ◽  
Research Attention ◽  
Global Policy ◽  
Cross Border ◽  
Political Risks ◽  
Greenfield Investments ◽  
Institutional Contexts

Outward foreign direct investment (OFDI) by Chinese firms has received considerable research attention recently (Li, Cui, & Lu, 2014; Lu, Liu, Wright, & Filatotchev, 2014; Xia, Ma, Lu, & Yiu, 2014). In particular, a number of studies have focused on cross-border mergers and acquisitions (M&As) involving Chinese firms (Li, Li, & Wang, 2016; Li & Xie, 2013; Xie & Li, 2016; Zhang, Zhou, & Ebbers, 2011). Following Child and Marinova's (2014) suggestion that both the home and host country institutional contexts play important roles in determining M&A activity, Buckley and his colleagues have examined how China's ‘Go Global’ policy influences the location choices in Chinese acquisitions and also how host country political risks affect such activities (Buckley et al., 2016). They looked into national political and legal conditions (see also Meyer, Estrin, Bhaumik, & Peng, 2009), and also examined a large dataset on China's cross-border M&As. Much of the previous work in this area has focused on greenfield investments (Duanmu, 2012; Kang & Jiang, 2012), so the work of Buckley et al. (2016) has broken new ground.

The long-term performance of cross-border mergers and acquisitions

2015 ◽  
Vol 9 (3) ◽  
pp. 385-400 ◽  
Author(s):  
Sai Lan ◽  
Fan Yang ◽  
Hong Zhu
Keyword(s):  
Mergers And Acquisitions ◽  
Developed Countries ◽  
Performance Outcomes ◽  
Chinese Firms ◽  
Content Type ◽  
Cross Border ◽  
Study Methodology ◽  
Long Term Performance ◽  
Term Performance

Purpose – The purpose of this paper is to examine Chinese firms’ long-term value creation derived from cross-border mergers and acquisitions (CBMAs). Design/methodology/approach – The authors collected a sample of 140 CBMAs conducted by Chinese firms listed in Shenzhen and Shanghai stock markets between 1997 and 2010. Long-horizon event study methodology was used to test hypotheses. Findings – The authors find Chinese firms gain long-term value from CBMAs. In particular, the authors find that Chinese firms tend to gain more value from targets from developed countries, and Chinese state-owned firms are more capable of gaining value from CBMAs than Chinese private firms. Originality/value – Given Chinese firms are increasingly acquiring targets outside of China in recent years, it is still unclear about whether Chinese firms gain value from these very expensive cross-border deals. This is one of the first studies that address the question: What are the long-term performance outcomes of Chinese CBMAs in recent years?

scholarly journals Cross Border Mergers and Acquisitions by Indian firms- An Analysis of Pre and Post Merger performance

2013 ◽  
Vol 4 (2) ◽  
pp. 227-236
Author(s):  
Kanika Sahni ◽  
Nancy Sahni
Keyword(s):  
Mergers And Acquisitions ◽  
Financial Performance ◽  
International Markets ◽  
Rank Test ◽  
Ratio Analysis ◽  
Cross Border ◽  
Signed Rank ◽  
Different Types ◽  
Before And After ◽  
Signed Rank Test

The corporate sector all over the world is restructuring its operations through different types of consolidation strategies like mergers and acquisitions in order to face challenges posed by the new pattern of  globalisation, which has led to the greater integration of national and international markets.. The intensity of cross-border operations recorded an unprecedented surge since the mid-1990s and the same trend continues (World Investment Report, 2000).The objective of the study is to analyse and compare the pre and post-merger and acquisition financial performance of four firms- Ranbaxy, Dr Reddy, Tata Steel and Hindalco through ratio analysis. For this, the data was being collected for three years before and after the acquisition from Capitaline database. Then to compare the changes, SPSS tool- Wilcoxon Signed Rank Test  was being applied. The study concluded that cross-border Mergers and Acquisitions of the selected firms have resulted in no significant change in the financial  performance of these firms.

Cross-Border Mergers and Acquisitions by Chinese Firms: value creation or value destruction?

2015 ◽  
Vol 25 (97) ◽  
pp. 130-145 ◽  
Author(s):  
Xianming Wu ◽  
Xingrui Yang ◽  
Haibin Yang ◽  
Hao Lei
Keyword(s):  
Mergers And Acquisitions ◽  
Value Creation ◽  
Chinese Firms ◽  
Cross Border

scholarly journals Distance and the completion of Chinese cross-border mergers and acquisitions

2019 ◽  
Vol 14 (3) ◽  
pp. 500-519 ◽  
Author(s):  
Lijun Dong ◽  
Xin Li ◽  
Frank McDonald ◽  
Jiaguo Xie
Keyword(s):  
Mergers And Acquisitions ◽  
Negative Impact ◽  
Emerging Market ◽  
Chinese Firms ◽  
Content Type ◽  
Cross Border ◽  
Significant Negative Impact ◽  
Negative Effect ◽  
Internationalization Strategies ◽  
Knowledge Intensive

Purpose The purpose of this paper is to draw attention to the significant lower completion rate of mergers and acquisitions (M&As) by firms from emerging economies (EEs) (China in particular) compared with firms from advanced economies, and identify the country- and industry-level factors that affect the completion of cross-border M&As by Chinese firms. Design/methodology/approach This study explores the effects of economic, cultural and institutional distances and target firms in technology- and knowledge-intensive industries on the completion of cross-border M&As by Chinese firms. It also examines the interplay between distance factors and technology- and knowledge-intensive industries on cross-border M&A completion. This study adopts a quantitative approach and is based on a sample of 768 announced cross-border M&A deals by firms in China between 2000 and 2015. Findings The results indicate that economic distance increases the likelihood of the completion of cross-border M&As when the target is in a more developed economy than China, but decreases when the target is in a less developed economy. Cultural and institutional distances have a significant, negative impact on the completion of cross-border M&As. In addition, target technology-intensive industries have a significant direct negative effect on cross-border M&A completion and moderate the relationship between the distance factors and the likelihood of cross-border M&A completion. Research limitations/implications The results reveal factors that affect the completion of cross-border M&As by emerging market firms (EMFs). Further research, however, is needed to discover how distance factors affect how EMFs find, evaluate and negotiate international bids. To broaden the scope of the research, data for firms from other EEs would also be required. Originality/value The study expands the literature that considers the effects of major distances on cross-border M&A completion. In addition, the importance of defining and measuring distances in the context of cross-border M&As is highlighted. Finally, the study expands knowledge on how cross-border M&As affect the internationalization strategies of EMFs by conceptualizing and testing how target industries affect cross-border M&A completion.

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