TY - JOUR
T1 - Impact of Chinese cross-border outbound M&As on firm performance
T2 - Econometric analysis using firm-level data
AU - Edamura, Kazuma
AU - Haneda, Sho
AU - Inui, Tomohiko
AU - Tan, Xiaofei
AU - Todo, Yasuyuki
N1 - Funding Information:
This study was conducted as part of the project titled “Productivity of East Asian Firms” undertaken at the Research Institute of Economy, Trade and Industry (RIETI). The authors would like to thank RIETI, and Inui and Todo thank the Japan Society for the Promotion of Science for financial support (Grant number 20243021 ). The opinions expressed and arguments employed in this paper are the responsibility of the authors and do not necessarily reflect those of Gakushuin University, the National Institute of Science and Technology Policy, RIETI, the University of Nottingham, Waseda University, or any institution with which authors are affiliated.
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2014/9
Y1 - 2014/9
N2 - Chinese cross-border outbound mergers and acquisitions (M&As) have been expanding rapidly since the mid-2000s with target firms in developed countries. The primary motives for such M&As are expansion into new markets and sourcing of knowledge and strategic assets. This study is the first attempt to examine the effects of Chinese outbound M&As on firm performance by applying propensity score matching estimations to a large set of firm-level data. We find that the sales, productivity, and tangible as well as intangible assets of the acquiring firms increase substantially after M&A transactions, which suggest that Chinese firms on average achieve their intended goals of outbound M&As. Further, outbound M&As do not increase research and development (R&D) intensity, implying complementarity, rather than overlapping, between R&D activities of the acquiring and acquired firms.
AB - Chinese cross-border outbound mergers and acquisitions (M&As) have been expanding rapidly since the mid-2000s with target firms in developed countries. The primary motives for such M&As are expansion into new markets and sourcing of knowledge and strategic assets. This study is the first attempt to examine the effects of Chinese outbound M&As on firm performance by applying propensity score matching estimations to a large set of firm-level data. We find that the sales, productivity, and tangible as well as intangible assets of the acquiring firms increase substantially after M&A transactions, which suggest that Chinese firms on average achieve their intended goals of outbound M&As. Further, outbound M&As do not increase research and development (R&D) intensity, implying complementarity, rather than overlapping, between R&D activities of the acquiring and acquired firms.
KW - China
KW - Cross-border outbound M&As
KW - Expansion to new markets
KW - Knowledge
KW - Strategic assets
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U2 - 10.1016/j.chieco.2014.06.011
DO - 10.1016/j.chieco.2014.06.011
M3 - Article
AN - SCOPUS:84904279444
VL - 30
SP - 169
EP - 179
JO - China Economic Review
JF - China Economic Review
SN - 1043-951X
ER -