Cross‐border M&As by Chinese firms: An analysis of strategic motives and performance

Abstract

This article considers the strategic motivation and performance of Chinese cross‐border mergerand‐ acquisition (M&A) activities of 27 deals that took place in the Shanghai and Shenzhen stock markets in 2000–2004. The study finds that cross‐border M&As formation by Chinese firms are primarily motivated by market development (that is, increasing market share) to enable faster entry into new markets, promote diversification, and obtain foreign advanced technology and other resources. In terms of wealth creation, the study finds that cross‐border M&As create value for Chinese acquiring firms. © 2008 Wiley Periodicals, Inc.

The contingent role of distributed leadership in the relationship between HR practices and organizational ambidexterity in the cross-border M&As of emerging market multinationals

“…Recent literature has provided detailed information on the motivations and means for internationalization of EMNEs (Boateng, Qian and Tianle, 2008, Zhang, Zhou and Ebbers, 2011, Kohli and Mann, 2012, Wang, Hong, Kafouros and Boateng, 2012, Huang and Renyong, 2014, Ning, Kuo, Strange and Wang, 2014. These five countries provide a good mix of domestic institutional context, cultural differences, and industries that engage in outward foreign direct investment (Hofstede, 1984, Buckley, Forsans and Munjal, 2012, Kohli and Mann, 2012, Wang et al, 2012, Nicholson and Salaber, 2013, Contractor, Lahiri, Elango and Kundu, 2014, Nair, Demirbag and Mellahi, 2015.…”

The impact of leadership on organizational ambidexterity and employee psychological safety in the global acquisitions of emerging market multinationals

“…The extant literature has identified the motivations and means for the internationalization of these EMMs (Boateng, Qian & Tianle, 2008;Zhang, Zhou & Ebbers, 2011;Kohli & Mann, 2012;Wang, Hong, Kafouros & Boateng, 2012;Huang & Renyong, 2014;Ning, Kuo, Strange & Wang, 2014). We chose Indian and Chinese companies as they belong to two of the largest emerging economies in the world that are institutionally diverse.…”

The motives and performance of cross-border acquirers from emerging economies: Comparison between Chinese and Indian firms

“…EM companies use cross-border acquisitions as a fast and easy way to enter new markets and acquire strategic assets (Boateng, Qian, & Tianle, 2008). Although this mode of entry is considered as being the quickest, easiest and most preferable means to access new marketing network and potential customers (Belderbos, 2003;Chen & Findlay, 2003;Deng, 2007;Deng, 2009;Li, 2007;Wang & Boateng, 2007), the process can be more or less difficult and expensive depending on firm-specific and country-specific (dis)advantages (Barkema, et al, 1996;Boateng & Glaister, 2003;Luo & Tung, 2007).…”