@article { , title = {Ownership Type, Home‐Country Government‐Directed Investment Policies and Firm Value in Strategic Sectors: Evidence from Chinese Acquiring Firms}, abstract = {Using data of Chinese acquirers in strategic sectors, we assess the role of home government and the effects of the interaction between ownership type and government-directed investment policies on acquiring firm value in cross-border acquisitions (CBAs). We find that CBA activities in strategic sectors encouraged by the home-country government through its investment policies experience significant increase in acquiring firm value. We also find that firms investing in government-designated strategic sectors generate wealth for acquirers, but contrary to efficiency logic rooted in agency theory, state-owned enterprises appear to outperform private-owned enterprises. Further analysis indicates that three financial incentives associated with government-directed policies – namely, interest-rate reduction, tax incentives and direct subsidies – constitute sources of firm value. Our results raise several policy implications, including the need for transparent and rule-based policies and governance systems to be developed and implemented by governments in the home and host countries to regulate state-supported firms investing in sensitive strategic sectors.}, doi = {10.1111/1467-8551.12538}, eissn = {1467-8551}, issn = {1045-3172}, issue = {3}, journal = {British Journal of Management}, pages = {1412-1431}, publicationstatus = {Published}, publisher = {Wiley}, url = {http://researchrepository.napier.ac.uk/Output/2822799}, volume = {33}, year = {2022}, author = {Boateng, Agyenim and Du, Min and Bi, XiaoGang and Kwabi, Frank O. and Glaister, Keith W.} }