Explaining the Surge in Chinese Cross-border M&As: The Role of Home Country Macroeconomic Factors and Institutions

Du, Min; Boateng, Agyenim; Wang, Yan

Abstract

This paper examines the trends, patterns, and the impact of institutional and home country macroeconomic influences on Chinese cross-border mergers and acquisitions (CBM&A) over the 1998-2011 period. Using a multi-method approach involving OLS, Fixed effect and Random effect models, our results indicate that
a number of home country macroeconomic and institutional variables, including GDP, money supply, interest rates, inflation, acquisitions in resource seeking sectors and cultural distance play an important role in explaining the trends of CBM&A outflows by the Chinese firms. The findings support the notion that home country macroeconomic and institutional factors play a role in explaining the trends of Chinese CBM&A activities thereby supporting location and institutional theories.

Citation

Du, M., Boateng, A., & Wang, Y. (2014, June). Explaining the Surge in Chinese Cross-border M&As: The Role of Home Country Macroeconomic Factors and Institutions. Presented at 21th Annual Conference of the Multinational Finance Society (MFS), Prague, Czech Republic

• Presentation Conference Type: Conference Paper (published)
• Conference Name: 21th Annual Conference of the Multinational Finance Society (MFS)
• Start Date: Jun 29, 2014
• End Date: Jul 1, 2014
• Online Publication Date: Jul 30, 2014
• Publication Date: Jul 30, 2014
• Deposit Date: Dec 4, 2022
• Public URL: http://researchrepository.napier.ac.uk/Output/2972073