The post‐acquisition performance of cross‐border mergers and acquisitions conducted by Chinese firms in the high‐tech industries: Profitable or innovative?

2021 ◽  
Author(s):  
Monica Yang ◽  
Qi Ai
Keyword(s):  
Mergers And Acquisitions ◽  
High Tech ◽  
Chinese Firms ◽  
Acquisition Performance ◽  
Cross Border

scholarly journals China's Cross-border Mergers and Acquisitions: A Contextual Distance Perspective

2016 ◽  
Vol 12 (3) ◽  
pp. 449-456 ◽  
Author(s):  
Jiatao Li ◽  
Guoguang Wan
Keyword(s):  
Mergers And Acquisitions ◽  
Host Country ◽  
Large Dataset ◽  
Chinese Firms ◽  
Research Attention ◽  
Global Policy ◽  
Cross Border ◽  
Political Risks ◽  
Greenfield Investments ◽  
Institutional Contexts

Outward foreign direct investment (OFDI) by Chinese firms has received considerable research attention recently (Li, Cui, & Lu, 2014; Lu, Liu, Wright, & Filatotchev, 2014; Xia, Ma, Lu, & Yiu, 2014). In particular, a number of studies have focused on cross-border mergers and acquisitions (M&As) involving Chinese firms (Li, Li, & Wang, 2016; Li & Xie, 2013; Xie & Li, 2016; Zhang, Zhou, & Ebbers, 2011). Following Child and Marinova's (2014) suggestion that both the home and host country institutional contexts play important roles in determining M&A activity, Buckley and his colleagues have examined how China's ‘Go Global’ policy influences the location choices in Chinese acquisitions and also how host country political risks affect such activities (Buckley et al., 2016). They looked into national political and legal conditions (see also Meyer, Estrin, Bhaumik, & Peng, 2009), and also examined a large dataset on China's cross-border M&As. Much of the previous work in this area has focused on greenfield investments (Duanmu, 2012; Kang & Jiang, 2012), so the work of Buckley et al. (2016) has broken new ground.

The long-term performance of cross-border mergers and acquisitions

2015 ◽  
Vol 9 (3) ◽  
pp. 385-400 ◽  
Author(s):  
Sai Lan ◽  
Fan Yang ◽  
Hong Zhu
Keyword(s):  
Mergers And Acquisitions ◽  
Developed Countries ◽  
Performance Outcomes ◽  
Chinese Firms ◽  
Content Type ◽  
Cross Border ◽  
Study Methodology ◽  
Long Term Performance ◽  
Term Performance

Purpose – The purpose of this paper is to examine Chinese firms’ long-term value creation derived from cross-border mergers and acquisitions (CBMAs). Design/methodology/approach – The authors collected a sample of 140 CBMAs conducted by Chinese firms listed in Shenzhen and Shanghai stock markets between 1997 and 2010. Long-horizon event study methodology was used to test hypotheses. Findings – The authors find Chinese firms gain long-term value from CBMAs. In particular, the authors find that Chinese firms tend to gain more value from targets from developed countries, and Chinese state-owned firms are more capable of gaining value from CBMAs than Chinese private firms. Originality/value – Given Chinese firms are increasingly acquiring targets outside of China in recent years, it is still unclear about whether Chinese firms gain value from these very expensive cross-border deals. This is one of the first studies that address the question: What are the long-term performance outcomes of Chinese CBMAs in recent years?

Acquisitions, Profitability, and Growth: A Study of Canadian Firms

2014 ◽  
Vol 15 (2) ◽  
pp. 98-117
Author(s):  
Igor Semenenko ◽  
Junwook Yoo
Keyword(s):  
United States ◽  
Precious Metals ◽  
The United States ◽  
High Tech ◽  
Improve Performance ◽  
Lower Growth ◽  
Acquisition Performance ◽  
Cross Border ◽  
Growth Prospects ◽  
Asset Size

Large acquisitions in the United States by Canadian firms lower growth prospects and profitability of Canadian companies. Results are driven by post-acquisition performance of the largest Canadian industries, including oil & gas, mining and precious metals, which together account for almost 40 percent of Canadian firms with asset size above 100 million reported in Compustat research files. Cross-border acquisitions of firms in high tech industries do not improve performance of Canadian firms.

Cross-Border Mergers and Acquisitions by Chinese Firms: value creation or value destruction?

2015 ◽  
Vol 25 (97) ◽  
pp. 130-145 ◽  
Author(s):  
Xianming Wu ◽  
Xingrui Yang ◽  
Haibin Yang ◽  
Hao Lei
Keyword(s):  
Mergers And Acquisitions ◽  
Value Creation ◽  
Chinese Firms ◽  
Cross Border

Resilience and risks of cross-border mergers and acquisitions

2019 ◽  
Vol 27 (4) ◽  
pp. 427-450 ◽  
Author(s):  
Ching-Chiu Hsu ◽  
Jeong-Yang Park ◽  
Yong Kyu Lew
Keyword(s):  
Risk Management ◽  
Mergers And Acquisitions ◽  
Mobile Phone ◽  
Design Methodology ◽  
Organizational Resilience ◽  
Acquisition Performance ◽  
Content Type ◽  
Cross Border ◽  
Multiple Risks ◽  
Target Firms

Purpose In cross-border mergers and acquisitions (M&As), acquirers often fail to achieve the expectations they held when they made the M&A deals. This paper aims to propose that the risks of cross-border M&As can be mitigated by building and cultivating organizational resilience as a prime means of risk management. Design/methodology/approach The research examines risks associated with cross-border M&A and how such risks can be mitigated by developing resilience. It presents dual cases of acquisitions of the biggest branded mobile phone manufacturer in Taiwan. Findings The authors find that the acquirer faces multiple risks in cross-border M&A transactions, including financial, strategic and organizational, and process risks that arise from misalignment between the goal of the M&As and the post-acquisition performance of the target firms. Originality/value The research provides theoretical insights on organizational resilience and how it can mitigate the specific risks involved in cross-border M&As, thereby developing coherent organizational resilience processes.

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