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 language | English |
|---|---|
| Pages (from-to) | 169-179 |
| Number of pages | 11 |
| Journal | China Economic Review |
| Volume | 30 |
| DOIs | |
| Publication status | Published - 2014 |
Fingerprint
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 journal › Article
}
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
PY - 2014
Y1 - 2014
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
UR - http://www.scopus.com/inward/record.url?scp=84904279444&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84904279444&partnerID=8YFLogxK
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 -