State ownership, institutional effects and value creation in cross-border mergers & acquisitions by Chinese firms

Du, Min; Boateng, Agyenim

Abstract

This paper considers the effects of state ownership and institutional influences on value creation through cross-border mergers & acquisitions by Chinese firms during the period using a sample of 468 firms. The findings indicate that Chinese bidders experience wealth gains ranging from 0.4771% to 1.5210% over a 10-day event window. The cross-sectional analysis indicates that state ownership, formal institutional distance, reforms in the foreign currency approval system exert significant impact on shareholder value. By considering the state ownership and institutions, this study provides evidence that government and institutions play a huge role in value creation of emerging market firm internationalisation through cross-border mergers & acquisitions (CBM&A)

Citation

Du, M., & Boateng, A. (2015). State ownership, institutional effects and value creation in cross-border mergers & acquisitions by Chinese firms. International Business Review, 24(3), 430-442. https://doi.org/10.1016/j.ibusrev.2014.10.002

• Journal Article Type: Article
• Acceptance Date: Oct 3, 2014
• Online Publication Date: Oct 30, 2014
• Publication Date: 2015-06
• Deposit Date: Dec 10, 2021
• Journal: International Business Review
• Print ISSN: 0969-5931
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 24
• Issue: 3
• Pages: 430-442
• DOI: https://doi.org/10.1016/j.ibusrev.2014.10.002
• Keywords: Cross-border mergers & acquisitions, Institutions, State ownership, Value creation
• Public URL: http://researchrepository.napier.ac.uk/Output/2828618