Cross-border mergers and acquisitions by Chinese listed companies: A principal–principal perspective

Abstract

Cross-borders mergers and acquisitions, Principal-principal conflicts, Government ownership, Event-study methodology,

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

“…However some principal-principal conflicts arise when the government is the majority owner, i.e., minority shareholders might have divergent interests and thus react negatively to a proposed cross-border M&A deal. Chen and Young (2010) find supporting evidence for this principal-principal hypothesis. Comparatively, Indian firms have more open market mechanisms and friendly government policies, where private enterprises can easily finance their cross-border M&As in the stock market (Accenture, 2006).…”

Home country institutions and the internationalization of state owned enterprises: A cross-country analysis

“…2 Such firms are estimated to own around 20% of the world's stock market capitalization (Economist, 2010) and hence play a growing role in both domestic and global business. Recent scholarly interest has been stimulated by the surge of Chinese SOEs becoming major international players in some industries (Chen & Young, 2010;Cui & Jiang, 2012;Morck et al, 2008;Ramasamy et al, 2012;Wang et al, 2012b;c). However, listed SOEs are a much wider phenomenon: they are common in many emerging economies, and play important niche roles in several West European countries (Goldeng et al, 2008;Knutsen, Rygh & Hvem, 2011).…”

Expanding to outward foreign direct investment or not? A multi-dimensional analysis of entry mode transformation of Chinese private exporting firms

“…Export experience is the number of years since firms started exporting (He & Wei, 2011). The number of R&D personnel in the industry is used to reflect Industry R&D. For Size, the logarithm transformation of a firm's sales (Cui & Jiang, 2009) or the number of employees (Chen & Young, 2010;Yiu et al, 2007) is used. Two broad definitions of 'born global' firms are chosen: POEs with at least 10% 5 The results are available upon request.…”

“…Firm size is related to a firm's ability to fulfil the resource commitments associated with internationalisation, and age reflects a firm's accumulation of knowledge and experience (Cui, Jiang & Stening, 2011;Deng, 2012;Wang et al, 2012). Size is measured by the logarithm transformation of a 22 firm's total assets, following Chen and Young (2010), and Age by the number of years since it was founded, similar to Yiu et al (2007).…”