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

Du, Min; Boateng, Agyenim

Authors

Agyenim Boateng



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