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.

Ownership participation of cross-border mergers and acquisitions by emerging market firms

2015 ◽  
Vol 53 (1) ◽  
pp. 221-246 ◽  
Author(s):  
Monica Yang
Keyword(s):  
Mergers And Acquisitions ◽  
Cultural Distance ◽  
Emerging Market ◽  
Foreign Market ◽  
Foreign Market Entry ◽  
Firm Level ◽  
Content Type ◽  
Cross Border ◽  
Emerging Market Firms ◽  
The Relationship

Purpose – The purpose of this paper is to adopt a multi-level approach to investigate what factors shape the content of emerging market firms’ foreign market entry decisions, particularly the ownership participation in cross-border mergers and acquisitions (M&As). In addition, the author would like to know if companies from emerging markets that possess higher (or lower) ownership in cross-border M&As receive higher valuation in the market. Design/methodology/approach – Using panel data of cross-border M&As by emerging market firms from 2000 to 2012, the author tests the hypothesized effects of the independent variables on the level of ownership participation; and uses a standard event study methodology to assess the market reaction of a particular cross-border M&A deal. Findings – The author finds that a country-level factor (institutional distance), an industry-level factor (industry unrelatedness) and a firm-level factor (board concentration) have significant impact on ownership participation in cross-border M&As. The author also finds that investors do give high valuation to those emerging market firms that chose high ownership participation in cross-border M&As. However, the author did not finds the support for the relationship between ownership participation and cultural distance. Neither did the author finds the support for the relationship between ownership participation and board independence. Originality/value – This study enhances the understanding of conditions under which the level of ownership participation in cross-border M&As would increase (decrease) and how the market reacts to high (low) ownership participation of cross-border M&As by emerging market firms.

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?

Improving China's alfalfa industry development: an economic analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wenxin Wang
Keyword(s):  
Negative Impact ◽  
Arable Land ◽  
Secondary Data ◽  
Influential Factors ◽  
Content Type ◽  
Measurement Results ◽  
Significant Negative Impact ◽  
Negative Effect ◽  
The Impact ◽  
Positive Effect

PurposeThis study analyzes the factors which affect the alfalfa cultivation acreage in China and estimates the development of alfalfa planting by the supply model.Design/methodology/approachBased on the characteristics and actual conditions of alfalfa cultivation in China, a naïve empirical model was created to analyze the impact of various influencing factors on the cultivation acreage of alfalfa.FindingsThe analysis of influential factors shows that China's alfalfa planting conforms to naïve price behavior. The prices of alfalfa and per capita arable land occupancy have a positive effect on the cultivation acreage, while the price of competitive crops and transportation costs have a negative effect on the production of alfalfa. Lastly, the 2012 alfalfa subsidy policy has a significant negative impact on alfalfa cultivation acreage.Research limitations/implicationsDue to the limited research on alfalfa supply in China, there is a lack of available research data and statistical data. A large number of data in this study are mainly indirect data derived and calculated from other industrial data. The measurement results may not be fully accurate.Originality/valueThis study represents the first empirical analysis of the characteristics of the factors influencing alfalfa cultivation acreage in China. The secondary data were used to analyze the influence of various control variables on the cultivation acreage of alfalfa, which is different from existing research.

Price reduction strategy

2017 ◽  
Vol 29 (3) ◽  
pp. 634-652 ◽  
Author(s):  
Waheed Kareem Abdul
Keyword(s):  
Durable Goods ◽  
Negative Impact ◽  
Structural Equations ◽  
Price Reduction ◽  
Durable Good ◽  
Price Fairness ◽  
Content Type ◽  
Reduction Strategy ◽  
Significant Negative Impact ◽  
Negative Effect

Purpose The purpose of this paper is to address consumers’ post-purchase perceptions toward the brand when it adopts price reduction strategy. The study specifically conceptualizes the effect of consumers’ price unfairness perceptions of past purchase (PUPoPP) on customer-based brand equity (CBBE) with a moderating effects of elapsed time since purchase (ETSP) and magnitude of price reduction (MPR) in situations where consumers were aware of the reduction in price of the product that they had purchased earlier. Design/methodology/approach A survey was conducted among consumers who were aware of the reduction in the price of the computer laptop which they had purchased earlier. A sample size of 214 respondents was utilized for the study. The hypotheses were tested by using partial least squares-structural equations modeling. Findings The results of the study show that there is a significant negative impact of PUPoPP on CBBE and the ETSP was found to enhance CBBE and also weaken the negative effect of PUPoPP on CBBE. Furthermore, the MPR was found to strengthen the negative effect of PUPoPP on CBBE. Originality/value The findings of this study are unique and contribute to both pricing and branding areas of research. While extant research in these areas has focused on price fairness perceptions in situations where the price of future purchase increases, particularly for frequently purchased non-durable goods, this study explored PUPoPP in situations where the firm reduces the price of a durable good such as a computer laptop.

scholarly journals Brand management in mergers and acquisitions

2018 ◽  
Vol 35 (5) ◽  
pp. 710-732 ◽  
Author(s):  
Yipeng Liu ◽  
Christina Öberg ◽  
Shlomo Yedidia Tarba ◽  
Yijun Xing
Keyword(s):  
Mergers And Acquisitions ◽  
Brand Management ◽  
Emerging Market ◽  
Country Of Origin ◽  
Corporate Brand ◽  
Content Type ◽  
Cross Border ◽  
Advanced Economies ◽  
Brand Portfolio ◽  
Country Of Origin Image

Purpose The purpose of this paper is to focus on emerging market companies that internationalize into advanced economies by means of acquisitions and to investigate brand management during post-acquisition integration from a multi-level perspective and to identify how a brand management strategy can be constructed. It takes into account the influences of country-of-origin image, corporate brand and brand portfolio to obtain a granular view of post-acquisition brand management. Design/methodology/approach A multiple case study approach was adopted. By using case studies and storytelling qualitative research methods, the empirical setting was related to the acquisitions undertaken by Chinese companies in Germany. Findings The authors identified three mechanisms for brand management in the post-acquisition integration of emerging market companies – namely, transferring, dynamically redeploying and categorizing – that underpin the interconnection and combined influence of country-of-origin image at the national level, corporate brand at the organizational level and brand portfolio at the product level. Practical implications Brand has been viewed as a strategic asset in Chinese cross-border mergers and acquisitions (M&As). Brand management is a dynamic process that involves learning and interaction between the acquirer and target. The research offers a practical guideline for both acquirers and targets in managing brand in the context of acquisitions undertaken by emerging market companies in advanced economies. Originality/value The findings provide important insights into the brand management strategies adopted in Chinese cross-border M&As in particular, and emerging market companies venturing into advanced economies in general. The interlinking of country, company and product levels introduces new ideas to the brand literature related to acquisitions, and the setting of Chinese companies acquiring German ones constitutes an important contribution to the understanding of the different ways in which companies from emerging economies may pursue branding strategies in the context of cross-border M&As.

Governance distance and the performance of cross-border private participation infrastructure projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yanxi Li ◽  
Heng Zhao ◽  
Shanshan Ouyang
Keyword(s):  
Emerging Market ◽  
Infrastructure Projects ◽  
Host Countries ◽  
Content Type ◽  
Cross Border ◽  
Study Results ◽  
Private Participation ◽  
Negative Effect ◽  
Host Government ◽  
The Impact

PurposeThe privatization of infrastructure promotes efficiency and service standards. While cross-border private participation infrastructure (PPI) projects hosted in emerging markets have become more prevalent in recent years, there have also been more failures. The purpose of this paper is to investigate how governance distance affects the survival of cross-border PPI projects.Design/methodology/approachThe authors provide theoretical justification and empirical evidence to verify our views. The authors test the hypotheses on a sample of 4,678 cross-border PPI project investments made in emerging market countries between 1990 and 2016. Estimation techniques consist of a binary logistic regression model and a rare events logistic model.FindingsThe findings suggest that increased governance distance can lead to project failure. The study results show that governance distance is negatively correlated with the probability of project survival. Greenfield investment intensifies the negative effect of governance distance while competitive contracts mitigate the negative effect of governance distance.Practical implicationsThe results reveal that transnational investment in infrastructure projects is susceptible to institutional differences between home and host countries. Therefore, both private enterprises and host government should pay attention to the impact of inter-country differences on negotiations and project operation. Competitive contracts mitigate this negative effect, but entering in the form of greenfield investment amplifies the negative effect of distance.Originality/valueTransnational industrial engineering projects are easily affected by the differences in governance levels between the two countries. This study introduces governance distance into the field of infrastructure projects, focusing on the impact of differences between home and host countries on transnational projects. The findings on infrastructure projects that are closely related to host government contribute to the literature by broadening the research of institution and distance.

scholarly journals Analysis of User Needs on Downloading Behavior of English Vocabulary APPs Based on Data Mining for Online Comments

Mathematics ◽  
2021 ◽  
Vol 9 (12) ◽  
pp. 1341
Author(s):  
Tinggui Chen ◽  
Lijuan Peng ◽  
Jianjun Yang ◽  
Guodong Cong
Keyword(s):  
Negative Impact ◽  
Positive Impact ◽  
User Needs ◽  
User Requirements ◽  
Functional Requirements ◽  
User Comments ◽  
Online Comments ◽  
Significant Negative Impact ◽  
Negative Effect ◽  
New Type

With highly developed social media, English learning Applications have become a new type of mobile learning resources, and online comments posted by users after using them have not only become an important source of intellectual competition for enterprises, but can also help understand customers’ requirements, thereby improving product functionalities and service quality, and solve the pain points of product iteration and innovation. Based on this, this paper crawled the online user comments of three typical APPs (BaiCiZhan, MoMoBeiDanCi and BuBeiDanCi), through emotion analysis and hotspot mining technology, to obtain user requirements and then the K-means clustering method was used to analyze user requirements. Finally, quantile regression is used to find out which user needs have an impact on the downloads of English vocabulary APPs. The results show that: (1) Positive comments have a more significant impact on users’ downloads behavior than negative online comments. (2) English vocabulary APPs with higher downloads, both the 5-star user ratings and the increase of emotional requirement have a negative effect on the increase in APP downloads, while the enterprise’s service requirement improvement has a positive effect on the increase of APP downloads. (3) Regarding English vocabulary APPs with average or high downloads, improving the adaptability and Appearance requirements have significant negative impact on downloads. (4) The functional requirements to improve products will have a significant positive impact on the increase in downloads of English vocabulary APPs.

Three strikes and you are out?

2017 ◽  
Vol 10 (4) ◽  
pp. 417-429 ◽  
Author(s):  
Michael Carriger
Keyword(s):  
Negative Impact ◽  
Univariate Analysis ◽  
Market Valuation ◽  
Financial Health ◽  
Content Type ◽  
Financial Measures ◽  
Significant Negative Impact ◽  
Three Strikes ◽  
Underlying Disorder ◽  
The Impact

Purpose Much has been written in both the management and finance literatures about the impact of downsizing on the financial health and market valuation of companies. However, surprisingly little attention has been paid to the frequency of downsizing and the impact of frequent downsizings. The purpose of this paper is to look at trends in downsizing, asking the question are companies that downsize once more likely to downsize again. The paper also looks at the impact of frequent downsizing, asking the question are frequent downsizers differentially impacted compared to less frequent downsizers. Design/methodology/approach Companies that appeared on the Fortune 500 in 2014 and were also on the list in 2008 were assessed for the impact of repeat downsizings on financial measures (profitability, efficiency, debt, and revenue) and market valuation. A trend analysis was conducted to assess the trend in downsizing and repeated downsizing from 2008 through 2014. A series of univariate analysis of variances were conducted to assess the impact of repeated downsizings on the financial and market valuation indicators. Findings Findings indicate that companies that downsize between 2008 and 2009 were more likely to downsize again in future years. And this repeat downsizing happened at a higher rate than would be expected by the percentage of companies that initially downsized. Findings also indicate that multiple downsizings had a significantly negative impact on the company’s financial performance as measured by two profitability ratios (return on assets and return on investment) and a borderline significant negative impact on the company’s market valuation as measured by stock equity, regardless of industry or initial financial health of the company. Originality/value Two competing theories were considered and the evidence found here support both. However, the “band-aid solution” theory, that downsizing may function as a band-aid addressing the symptoms that lead to the downsizing but not the underlying disorder or cause may be a more parsimonious explanation for the results here. It is hoped that these findings will inform both scholars and practitioners, giving both a clearer picture of the impact of multiple downsizings on corporate performance.

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.

Every coin has two sides: the impact of time pressure on employees’ knowledge hiding

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xianchun Zhang ◽  
Zhu Yao ◽  
Wan Qunchao ◽  
Fu-Sheng Tsai
Keyword(s):  
Time Pressure ◽  
Negative Impact ◽  
Positive Impact ◽  
Job Security ◽  
Statistical Technique ◽  
Content Type ◽  
Individual Knowledge ◽  
Negative Effect ◽  
Knowledge Hiding ◽  
The Impact

Purpose Time pressure is the most common kind of work pressure that employees face in the workplace; the existing research results on the effect of time pressure are highly controversial (positive, negative, inverted U-shaped). Especially in the era of knowledge economy, there remains a research gap in the impact of time pressure on individual knowledge hiding. The purpose of this paper is to explore the impact of different time pressure (challenge and hindrance) on knowledge hiding and to explain why there is controversy about the effect of time pressure in the academics. Design/methodology/approach The authors collected two waves of data and surveyed 341 R&D employees in China. Moreover, they used regression analysis, bootstrapping and Johnson–Neyman statistical technique to verify research hypotheses. Findings The results show that challenge time pressure (CTP) has a significant negative effect on knowledge hiding, whereas hindrance time pressure (HTP) has a significant positive effect on knowledge hiding; job security mediates the relationship between time pressure and knowledge hiding; temporal leadership strengthen the positive impact of CTP on job security; temporal leadership can mitigate the negative impact of HTP on job security. Originality/value The findings not only respond to the academic debate about the effect of time pressure and point out the reasons for the controversy but also enhance the scholars’ attention and understanding of the internal mechanism between time pressure and knowledge hiding.

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