State ownership, institutional effects and value creation in cross-border Mergers and 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 and 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% - 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. (2013, July). State ownership, institutional effects and value creation in cross-border Mergers and Acquisitions by Chinese firms. Presented at Academy of International Business (AIB) 2013 Istanbul Conference, Istanbul, Turkey

• Presentation Conference Type: Conference Paper (published)
• Conference Name: Academy of International Business (AIB) 2013 Istanbul Conference
• Start Date: Jul 3, 2013
• End Date: Jul 6, 2013
• Online Publication Date: Jul 31, 2013
• Publication Date: 2013-07
• Deposit Date: Dec 4, 2022
• Series ISSN: 2078-0435
• Book Title: Proceedings of the 55th Annual Meeting of the Academy of International Business "Bridging the Divide: Linking IB to Complementary Disciplines and Practice"
• Public URL: http://researchrepository.napier.ac.uk/Output/2968542
• Publisher URL: https://www.aib.world/wp-content/uploads/2019/04/Proceedings-2013-Istanbul.pdf