State Ownership, Institutional Effects and Value Creation in Cross-border Mergers & Acquisitions by Chinese Firms

Date

2014-10-30

Advisors

Journal Title

Journal ISSN

ISSN

0969-5931

Volume Title

Publisher

Elsevier

Type

Article

Peer reviewed

Yes

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% to 1.5210% over 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)

Description

The file attached to this record is the author's final peer reviewed version. The Publisher's final version can be found by following the DOI link.

Keywords

Cross-border mergers & acquisitions

Citation

Boateng, A. and Du, M. (2014) State Ownership, Institutional Effects and Value Creation in Cross-border Mergers & Acquisitions by Chinese Firms. International Business Review, 24 (3), pp. 430-442

Rights

Research Institute

Finance and Banking Research Group (FiBRe)