Defying gravity: The determinants of China's outbound mergers and acquisitions.

We find that the determinants of China's outbound M&As depart dramatically from the literature. First, China's M&A volume with a target country is not affected by geographic distance, currency appreciation, or stock market return. Second, Chinese acquirers pick an unconventional uphill battle by pri...

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Publicado en:Contemporary Economic Policy Vol. 41; no. 4; pp. 714 - 733
Autores principales: Cheng, Zhongming, Lin, Shengle
Formato: Artículo
Publicado: Wiley-Blackwell Oct2023
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Oct2023
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        atl: Defying gravity: The determinants of China's outbound mergers and acquisitions.
      aug:
        au:
          Cheng, Zhongming
          Lin, Shengle
        affil:
          Academy of Financial Research, Wenzhou University, Wenzhou Zhejiang,, China
          Lam Family College of Business, San Francisco State University, San Francisco California,, USA
      su:
        China
        Emerging markets
        Mergers & acquisitions
        Investor protection
        Rate of return on stocks
        Developed countries
        Gravity
        Bank mergers
      sug:
        subj:
          Emerging markets
          China
          Other Depository Credit Intermediation
          Savings Institutions
          Personal and commercial banking industry
          Commercial Banking
          Mergers & acquisitions
          Investor protection
          Rate of return on stocks
          Developed countries
          Gravity
          Bank mergers
      keyword:
        cross border
        determinants
        emerging markets
        investor protection laws
        mergers and acquisitions
        partial acquisition
        cross border
        determinants
        emerging markets
        investor protection laws
        mergers and acquisitions
        partial acquisition
      ab: We find that the determinants of China's outbound M&As depart dramatically from the literature. First, China's M&A volume with a target country is not affected by geographic distance, currency appreciation, or stock market return. Second, Chinese acquirers pick an unconventional uphill battle by primarily targeting countries with greater cultural distance, stronger investor protection laws, and higher per capita income. We also document that China's outbound M&As have a higher than normal percentage of deals being partial acquisitions. We argue that emerging markets can differ remarkably from developed countries in the considerations and modes of outbound M&As.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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