Impact of Chinese cross-border outbound M&As on firm performance: Econometric analysis using firm-level data

Kazuma Edamura, Sho Haneda, Tomohiko Inui, Xiaofei Tan, Yasuyuki Todo

    Research output: Contribution to journalArticle

    12 Citations (Scopus)

    Abstract

    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.

    Original languageEnglish
    Pages (from-to)169-179
    Number of pages11
    JournalChina Economic Review
    Volume30
    DOIs
    Publication statusPublished - 2014

    Fingerprint

    Cross-border
    Firm-level data
    Firm performance
    Econometric analysis
    Cross-border mergers and acquisitions
    Overlapping
    Sourcing
    New markets
    R&D intensity
    Chinese firms
    Strategic assets
    Propensity score matching
    Knowledge assets
    Intangible assets
    Productivity
    Complementarity
    Developed countries

    Keywords

    • China
    • Cross-border outbound M&As
    • Expansion to new markets
    • Knowledge
    • Strategic assets

    ASJC Scopus subject areas

    • Economics and Econometrics
    • Finance

    Cite this

    Impact of Chinese cross-border outbound M&As on firm performance : Econometric analysis using firm-level data. / Edamura, Kazuma; Haneda, Sho; Inui, Tomohiko; Tan, Xiaofei; Todo, Yasuyuki.

    In: China Economic Review, Vol. 30, 2014, p. 169-179.

    Research output: Contribution to journalArticle

    Edamura, Kazuma ; Haneda, Sho ; Inui, Tomohiko ; Tan, Xiaofei ; Todo, Yasuyuki. / Impact of Chinese cross-border outbound M&As on firm performance : Econometric analysis using firm-level data. In: China Economic Review. 2014 ; Vol. 30. pp. 169-179.
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