China's OFDI policy announcements and cross-border M&A

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fredrik Utesch-Xiong
Keyword(s):  
Policy Change ◽  
Negative Binomial ◽  
Change Theory ◽  
Content Type ◽  
Policy Effect ◽  
Cross Border ◽  
Firm Internationalization ◽  
Study Support ◽  
Policy Types

PurposeThis paper aims to enhance the understanding of the role of Chinese outward foreign direct investment (OFDI) policies for cross-border merger and acquisition (M&A) by distinguishing between coercive and noncoercive OFDI policies.Design/methodology/approachThe dependent variable is the count of completed M&A transactions, measured monthly. Due to the nature of the study’s data, the author performs a zero-inflated negative binomial (ZINB) regression.FindingsSeparating between coercive and noncoercive policies, the author finds that the latter type shows a stronger supportive effect on the count of M&A deals. Considering firm ownership, the study’s results reveal that announcements of coercive policies have a weaker effect on cross-border M&A for state-owned enterprises (SOEs) than that for private-owned enterprises (POEs). For local SOEs (LSOEs) and central SOEs (CSOEs), this difference becomes even larger with noncoercive policy announcements. The influence on M&A of both policy types gets partially replaced with increasing internationalization experience.Originality/valueCombining institutional theory with policy change theory, the author argues that international business (IB) research on policy change needs to consider the integration of theoretical policy-level approaches to catch the effects of policy change on firm internationalization appropriately. The findings of the study support this argument by highlighting that the policy effect differs by policy type.

The impact of firm resources on innovation

2018 ◽  
Vol 21 (4) ◽  
pp. 672-694 ◽  
Author(s):  
Irem Demirkan
Keyword(s):  
Negative Binomial ◽  
Network Size ◽  
Firm Level ◽  
Firm Innovation ◽  
Holistic View ◽  
Slack Resources ◽  
Content Type ◽  
External Resources ◽  
The Impact

PurposeThe purpose of this paper is to propose that the resources that a firm owns and has full control (firm-level resources) and resources that a firm access through direct connection with other firms (network-level resources) will impact firm innovation when effectively deployed by the firm. While previous research examined these factors separately, the author takes a holistic view and looks into their effects on innovation simultaneously. The author also introduces the moderating effects, i.e. the variables that can enhance firm innovation through their interaction with internal and external resources.Design/methodology/approachThe author tested the role of financial resources and slack resources in the form of cash slack and human slack at the firm level, and network size, network tie strength, and network diversity at the network level on the firm innovation. Using generalized negative binomial model with Huber-White procedure, the author analyzed 306 firms from the biotechnology industry over a span of 17 years.FindingsThe analysis suggests that cash slack impact innovation negatively. However, this link is moderated by firm size such that for large firms cash slack affects innovation positively. Network-level resources all positively impact innovation and have more economic impact on firm innovation than firm-level resources. Furthermore, although human slack negatively affects innovation, its interaction with network size enhances innovation.Originality/valueThe research makes important contributions to both strategic management and innovation literatures especially when, the author considers the role of firm-level slack in driving firm innovation. Previous research reported conflicting findings about the availability of slack resources and firm performance. The results showed that the relationship between slack resources and firm innovation is negative and significant, both for available slack and human slack. This finding parallels with previous research which reported that constraints such as lack of slack resources can actually facilitate innovation. The author also contributes to the literature by introducing boundary conditions which can enhance firm innovation through their interaction with firm-level internal and network-level external resources. In this respect, to the author’s knowledge, this is among the first studies to combine the slack literature focusing on firm-level resources with the literature on network-level resources.

Consumers’ reactions to cross-border acquisitions

2019 ◽  
Vol 122 (2) ◽  
pp. 655-677
Author(s):  
Riccardo Resciniti ◽  
Michela Matarazzo ◽  
Gabriele Baima
Keyword(s):  
Experimental Design ◽  
Corporate Reputation ◽  
Design Methodology ◽  
Consumer Perceptions ◽  
Psychic Distance ◽  
Target Firm ◽  
Content Type ◽  
Cross Border ◽  
Acquiring Firms

Purpose The purpose of this paper is to focus on consumers’ reactions to cross-border acquisitions (CBA) by exploring the role of consumer perceptions of the psychic distance between the country of the acquirer and that of the target firm when the acquiring corporation has a good or poor reputation. Design/methodology/approach A 2×2 experimental design which manipulated psychic distance and acquirer’s corporate reputation was conducted in Italy. The study considers an Italian food target firm and compares four foreign acquiring firms with different combinations of corporate reputation (good/poor) and psychic distance to Italy (small/large). Findings The authors found that the degree of psychic distance between the countries of the acquiring and targeted firms was inversely related to Italian consumers’ intentions to repurchase the products of the post-acquisition target, and unrelated to the acquirer’s corporate reputation. Originality/value This is the first study focusing on psychic distance in the context of CBA, especially from the perspective of consumer behavior, which can help to better understand certain negative reactions toward the acquisition of a business.

Cross-Border M&A is followed by cross-border investor relations

2016 ◽  
Vol 32 (9) ◽  
pp. 4-6
Author(s):  
Arsia Amir-Aslani ◽  
Philippe Lê ◽  
Mark Anthony Chanel
Keyword(s):  
Capital Markets ◽  
Design Methodology ◽  
Strategic Communication ◽  
Investor Relations ◽  
Short Term ◽  
Content Type ◽  
Investor Confidence ◽  
Cross Border ◽  
Biotechnology Sector

Purpose This paper aims to highlight the growing role of strategic communication in cross-border M&A in helping companies meet market expectations and investor confidence. Design/methodology/approach Viewpoint. Findings When all of the elements about a corporation that can possibly be compiled and projected and understood by the financial community, then that company can expect to compete successfully in the capital markets. Originality/value Communicating the value of R&D programs and their short/term goals has not been extensively covered for the biotechnology sector.

The joint effect of investment motives and institutional context on Russian international acquisitions

2016 ◽  
Vol 11 (4) ◽  
pp. 674-692 ◽  
Author(s):  
Desislava Dikova ◽  
Andrei Panibratov ◽  
Anna Veselova ◽  
Lyubov Ermolaeva
Keyword(s):  
Negative Binomial ◽  
Cultural Distance ◽  
Institutional Distance ◽  
Future Research ◽  
Foreign Direct Investments ◽  
Outward Fdi ◽  
Foreign Investments ◽  
Data Set ◽  
Content Type ◽  
Cross Border

Purpose The purpose of this paper is to advance knowledge about factors that influence the location of Russian foreign direct investments. In particular, it focusses on the role of institutional distance (represented by corruption perception distance, political distance and cultural distance) as a moderator of the relationships between traditional investment motives and the number of M&A deals made by Russian companies in a specific country. Design/methodology/approach The analysis is conducted on panel data of Russian cross-border M&As launched in 46 countries during the period 2007-2013. The final data set includes 322 observations. Due to the nature of dependent variable and the results of pre-tests, negative binomial regression is used in the main analysis. Findings The key finding of the study reveals the importance of institutional distance, in particular, the moderating effect of different dimensions of institutional distance on the relationships between internationalization motives and the number of Russian M&As. Corruption, political and cultural differences show different effects in terms of both direction and strength, but all three were found to be significant. Research limitations/implications The major concern stems from the type of secondary data used in the paper. This indicates the necessity to improve data collection methods which could allow for better transparency of Russian foreign investments, would facilitate more sophisticated research and probably more accurate business forecasts. Originality/value By conducting a systematic examination of Russian cross-border M&As the authors contribute to the literature on emerging markets firms by addressing the important yet under-researched domain of Russian foreign direct investments. Building on the macroeconomic and institutional logic proposed in this study, future research on Russian cross-border activities could add to the understanding by providing more generalizable and critical evidence. The study provides a point of departure from prior studies on Russian outward FDI which the authors hope to inspire future research to further analyze the drivers of Russian M&As and foreign investments in general.

scholarly journals Cross-border banking and foreign branch regulation in Europe

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lucia Gibilaro ◽  
Gianluca Mattarocci
Keyword(s):  
Banking Sector ◽  
Foreign Bank ◽  
Capital Adequacy ◽  
Foreign Banks ◽  
European Economic Area ◽  
The European Union ◽  
Content Type ◽  
Cross Border ◽  
European Banking

Purpose This paper aims to examine the relevance of cross-border activity in the European banking sector, evaluating the role of differences in regulation to explain the level of interest in entering foreign markets. Design/methodology/approach The sample considers all banks in the European Union (EU 28) existing at year-end 2017, and information about the ultimate owners’ nationality to classify local and foreign banks is collected. The analysis provides a mapping of regulatory restrictions for foreign banks and evaluates how they impact the role of foreign players in the deposit and lending markets. Findings Results show that the lower are the capital adequacy requirements, the higher are the amounts of loans and deposits offered by non-European Economic Area banks and, additionally, the higher the probability of having a foreign bank operating in the country. Originality/value This paper provides new evidence on regulatory arbitrage opportunities in the EU and outlines differences among EU countries not previously studied.

Do shareholder's independency and board size affect synergies from cross-border bank mergers and acquisitions? International evidence from social network analysis

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sheng-Hung Chen ◽  
Feng-Jui Hsu ◽  
Ying-Chen Lai
Keyword(s):  
Social Network ◽  
Social Network Analysis ◽  
Network Analysis ◽  
Ordinary Least Squares ◽  
Standard Errors ◽  
Board Size ◽  
Content Type ◽  
Cross Border ◽  
The Difference

PurposeThere is little known globally on the association among the independent shareholder, board size and merger and acquisition (M&A) performance. This paper addresses the global issue about cross-border M&A in banking sector, particularly exploring the role of difference in the independent shareholder and board size between acquirer and target banks on synergy gains based on the international study.Design/methodology/approachBased on cross-border bank M&As data on 59 deals from 1995 to 2009, we initially apply social network analysis techniques to explore the country connectedness of the acquirer-target banks in cross-border M&As. Ordinary least squares (OLS) with robust standard errors is further used to investigate synergy gains within the difference in the degree of bank independent shareholder and board sizes between the acquirer and target banks.FindingsOur results indicate that the acquiring banks are generally interconnected with the targeted banks and that some of acquiring banks are clearly concentrated in Asian countries including China, Hong Kong, and Philippines. Moreover, we find that cross-border M&As with larger difference in independent shareholders between the bidder and target bank would result in higher synergy gains in all cases of takeover premiums on 1 day, 1 week and 4 weeks. In addition, financial differences between the bidder and target banks have a significant impact on synergetic gains, a topic not explored in previous studies. There is no evidence that institutional and governance differences between bidder and target bank have significant cross-border impacts on takeover premiums with respect to 1 day, 1 week and 4 weeks, respectively.Originality/valueThis paper contributes to the literature by exploring the international issue about the role of difference in the degree of bank independent shareholder and board sizes between acquirer and target banks on synergy gains. Based on bank cross-border M&As data on 59 deals from 1995 to 2009, we initially apply social network analysis to explore the country connectedness of acquirer-target bank in cross-border M&As, while ten ordinary least squares (OLS) with robust standard errors is used to investigate synergy gains within the difference in the degree of bank independent shareholder and board sizes between acquirer and target banks.

Cause-related marketing for successful cross-border post-acquisition performance

2019 ◽  
Vol 37 (4) ◽  
pp. 695-712 ◽  
Author(s):  
Michela Matarazzo ◽  
Riccardo Resciniti ◽  
Biagio Simonetti
Keyword(s):  
Negative Influence ◽  
Positive Influence ◽  
Target Firm ◽  
Content Type ◽  
Repurchase Intentions ◽  
Cross Border ◽  
Cause Related Marketing ◽  
The Impact ◽  
Moderating Role

Purpose Building on the scant literature on cross-border acquisitions (CBAs) in the consumer perspective, the purpose of this paper is to investigate the impact of the acquirer’s cause-related marketing (CRM) on consumers’ repurchase intentions of the products of the post-acquisition target. In addition, the study aims at analyzing the moderating role of acquirer’s CRM on the relationship between corporate ability (CA) and country image (CI) on consumers’ repurchase intentions of the products of the post-acquisition target. Design/methodology/approach Drawing on a sample of Italian consumers (n=351), the authors examined the roles played by the acquirer’s CRM on consumer behaviour by considering an Italian target firm with a high reputation and comparing eight foreign acquiring firms with different combinations of CRM (poor/good), CA (poor/good) and CI (high/low). Findings The authors found that CRM, CA as well as CI have a significant impact on Italian consumers’ intention to repurchase the products of the post-acquisition target. Furthermore, it is shown that good CRM reduces the negative influence of a poor CA and a low CI on post-acquisition repurchase intentions and strengthen the positive influence, thus confirming the moderating role of CRM. Originality/value The research investigates, in the context of CBAs, the impact of the acquirer’s CRM on the host country consumers’ repurchase intentions after the CBA, which has not previously been examined. It can help managers to understand the conditions under which CBAs will be favourably evaluated.

scholarly journals Cross-border B2C e-commerce to Greater China and the role of logistics: a literature review

2017 ◽  
Vol 47 (9) ◽  
pp. 772-795 ◽  
Author(s):  
Maria Giuffrida ◽  
Riccardo Mangiaracina ◽  
Alessandro Perego ◽  
Angela Tumino
Keyword(s):  
Bibliographic Databases ◽  
Future Research ◽  
Scientific Publications ◽  
Content Type ◽  
Greater China ◽  
Cross Border ◽  
Body Of Knowledge ◽  
Complex Process ◽  
Managerial Perspective

Purpose This paper reviews scientific publications in the field of logistics underlying cross-border e-commerce (CBEC) to China. A focus on the role played in this complex process by other countries of the Greater China is carried out. The purpose of this paper is to outline directions for future research to encourage CBEC development. Design/methodology/approach The review is based on 32 papers published from 2002 to 2016 in international peer-reviewed journals or proceedings of international conferences, retrieved from bibliographic databases and science search engines. Findings CBEC to China is gaining increasing interest, as shown by the rising amount of publications from 2013 onwards. Within these contributions, however, studies specifically investigating the relation between logistics and e-commerce, commonly acknowledged as critical, seem to lack. Many contributions are descriptive and do not provide specific insights on how to manage the complexities of CBEC logistics in this region. Stemming from the review, a set of possible development areas are identified, including distribution network design, i.e. deciding how to shape the CBEC distribution structure, and logistics outsourcing, i.e. determining whether to manage logistics activities in-house or through third parties. Originality/value To the extent of the authors’ knowledge, this paper is the first one to classify the existing body of knowledge on logistics supporting CBEC. Its main contribution is the critical identification of current research gaps and the proposal of key themes for future research. From a managerial perspective, it helps export and logistics managers identify the key challenges of managing CBEC logistics to Greater China.

The effect of leader personality on follower behaviour

2018 ◽  
Vol 39 (1) ◽  
pp. 14-33 ◽  
Author(s):  
Mehmet Kahya ◽  
Faruk Şahin
Keyword(s):  
Task Performance ◽  
Mediating Effect ◽  
Content Type ◽  
Mediating Role ◽  
Member Exchange ◽  
Study Support ◽  
Satisfaction With The Leader ◽  
Performance Satisfaction ◽  
The Relationship

Purpose The purpose of this paper is to examine the mediating effect of the leader-member exchange (LMX) on the relationship between leader personality and follower attitudes and behaviours, including task performance, satisfaction with the leader and organisational citizenship behaviour. Design/methodology/approach Adopting a multifaceted perspective to examine the relationships among the research variables, data were collected from 67 leaders and 372 followers. To test the hypotheses, hierarchical linear modelling analyses were conducted. Findings The results indicate that leader extraversion is positively related to follower task performance and that leader agreeableness is positively related to follower organisational citizenship behaviour and satisfaction with leaders. Moreover, the results indicate that the quality of the LMX relationship partially mediated the positive relationship between leader extraversion and follower task performance and fully mediated the relationship between leader agreeableness and satisfaction with leader and organisational citizenship behaviour. Practical implications The findings of this study support the mediating role of the LMX relationship between leader personality and follower attitudes and behaviours. Hence, it is worthwhile to examine the effects of leader personality in an organisational context. Originality/value The originality of this study is that it focusses on the integration of leader personality, LMX, and follower attitudes and behaviours in a single study, providing a model that indicates the mediating role of LMX in the relationship between leader personality and follower attitudes and behaviours.

scholarly journals Role of Ribonucleotide Reductase in Bacillus subtilis Stress-Associated Mutagenesis

2016 ◽  
Vol 199 (4) ◽  
Author(s):  
Karla Viridiana Castro-Cerritos ◽  
Ronald E. Yasbin ◽  
Eduardo A. Robleto ◽  
Mario Pedraza-Reyes
Keyword(s):  
Bacillus Subtilis ◽  
Ribonucleotide Reductase ◽  
Single Class ◽  
Content Type ◽  
Conditional Mutant ◽  
Dna Replication And Repair ◽  
Metabolic Conditions ◽  
Study Support ◽  
Encoding Genes

ABSTRACT The Gram-positive microorganism Bacillus subtilis relies on a single class Ib ribonucleotide reductase (RNR) to generate 2′-deoxyribonucleotides (dNDPs) for DNA replication and repair. In this work, we investigated the influence of RNR levels on B. subtilis stationary-phase-associated mutagenesis (SPM). Since RNR is essential in this bacterium, we engineered a conditional mutant of strain B. subtilis YB955 (hisC952 metB5 leu427) in which expression of the nrdEF operon was modulated by isopropyl-β-d-thiogalactopyranoside (IPTG). Moreover, genetic inactivation of ytcG, predicted to encode a repressor (NrdR) of nrdEF in this strain, dramatically increased the expression levels of a transcriptional nrdE-lacZ fusion. The frequencies of mutations conferring amino acid prototrophy in three genes were measured in cultures under conditions that repressed or induced RNR-encoding genes. The results revealed that RNR was necessary for SPM and overexpression of nrdEF promoted growth-dependent mutagenesis and SPM. We also found that nrdEF expression was induced by H2O2 and such induction was dependent on the master regulator PerR. These observations strongly suggest that the metabolic conditions operating in starved B. subtilis cells increase the levels of RNR, which have a direct impact on SPM. IMPORTANCE Results presented in this study support the concept that the adverse metabolic conditions prevailing in nutritionally stressed bacteria activate an oxidative stress response that disturbs ribonucleotide reductase (RNR) levels. Such an alteration of RNR levels promotes mutagenic events that allow Bacillus subtilis to escape from growth-limited conditions.

Sign in / Sign up

Export Citation Format

Share Document