Effects of foreign acquisitions on financial constraints, productivity and investment in R&amp;D of target firms in China

Chen, Yuhuilin; Hua, Xiuping; Boateng, Agyenim

doi:10.1016/j.ibusrev.2016.12.005

Cited by 44 publications

(23 citation statements)

References 89 publications

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“…For example, Ref. [7] analyzed the investment activities of Japanese firms with large publicly traded debt (corporate bonds) during the global financial crisis of 2008. It was found that firms with close bank-firm relationships are less financially constrained and have low borrowing costs.…”

Section: Literature Overview and Hypotheses Developmentmentioning

confidence: 99%

“…Regarding this measurement issue, we recommend for advance reading an overview by [21] on the literature related to measuring financial constraints. One stream of literature uses the data of financial statements and identifies the financial constraints indirectly-by means of sensitivity of investment costs to diverse factors [4,5,7,11].…”

Section: Literature Overview and Hypotheses Developmentmentioning

confidence: 99%

“…Bond market has a similar influence on reducing barriers for financing. The development of various segments of debt market can be quite advantageous due to the fact that in order to realize investment projects, the companies are able to substitute successfully one source of financing for another [7]. At the same time, a high level of debt burden at the firm level may increase the barriers for financing and facilitate the reduction of investments costs of the company [19].…”

Section: Hypothesismentioning

confidence: 99%

“…Second, we directly measure financing constraints based on the Business Environment and Enterprise Performance Survey (BEEPS) survey dataset [3]. Majority of the previous papers uses the data of financial statements and identify the financial constraints indirectly [4][5][6][7]. Our study registers the perception of financial constraints by top managers.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Perception and Drivers of Financial Constraints for the Sustainable Development

et al. 2020

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Financial market imperfections constrain firms’ ability to obtain funds. This is especially true for the former communist bloc countries. However, the restrictions on access to financing and the attitudes of management in these geographies remain overlooked by academic research and represent an important obstacle on the roadmap to sustainable development. The objective of this paper is to fill this gap by analyzing the impact of ownership structure, institutional environment development, and debt market profile on the perception of financial constraints by the representatives of corporate top management from 28 countries of the former communist bloc. Our analysis spans over the period 2002–2013. We apply the probit and Heckman models to investigate nonlinear and multicast effects of the considered factors. We evidence that during the crisis and post-crisis periods, foreign ownership alleviates the restrictions on access to financial resources. We also discuss the role of state ownership. We find that the volume of local currency bond market has a nonlinear U-shape relationship. Our results are useful for policy makers focused on sustainable development of the former communist economies by means of improving access of businesses to financing.

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Section: Literature Overview and Hypotheses Developmentmentioning

confidence: 99%

Section: Literature Overview and Hypotheses Developmentmentioning

confidence: 99%

Section: Hypothesismentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Perception and Drivers of Financial Constraints for the Sustainable Development

et al. 2020

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“…Several factors have been proposed to affect the performance outcomes of acquisitions, including acquisition experience (Haleblian & Finkelstein, 1999;Vermeulen & Barkema, 2001), integration (Schweiger & Lippert, 2005), institutional variables (Brockman, Rui, & Zou, 2013), and the resources of acquirers and targets. This study focuses on the impacts of the acquirer and target resources on the success of acquisitions in emerging markets, as there is a pressing need to understand the dynamics of the acquisitions taking place in these markets (Chen, Hua, & Boateng, 2017;Liou, Rao-Nicholson, & Sarpong, 2018).…”

Section: Theoretical and Empirical Literature Reviewmentioning

confidence: 99%

Which Is More Important to the Success of an Acquisition; Acquirer or Target Resources?

Genc

2020

bmij

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The resources of both acquirers and targets have been studied in terms of the drivers and success of acquisitions. Despite the large number of studies that have been conducted, we still do not know whose resources are more critical to the success of acquisitions. This study aims to examine the role of acquirer and target resources in the success of acquisitions. All acquisitions that took place in Turkey between 1990 and 2017 were analyzed to investigate the research question. The findings of a regression analysis of 425 acquisitions in this emerging market context reveal that acquirer resources are more critical than target resources in acquisition performance. The effects of resources on domestic and international acquisitions are also compared, and it is found that acquirer resources are more critical in domestic acquisitions, whereas target resources are more important in international acquisitions. The implications of these findings are discussed in terms of information asymmetry and post-acquisition integration issues, and directions for future research are suggested.

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Environmental backgrounds of CEOs and corporate environmental management information disclosure: The mediating effects of financing constraints and media attention

Zhu

2023

Corp Soc Responsibility Env

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In the context of the global economy's green and low‐carbon development, companies are paying increasing attention to environmental management. This study compiles statistics on Chinese listed firms from 2010 to 2020 and examines the influence of CEOs' environmental background on corporate environmental management information disclosure based on imprinting theory. It found that CEOs with environmental backgrounds are more willing to disclose corporate environmental management information, and the level of disclosure is high. By attracting media attention and reducing the company's financing constraints, CEOs with an environmental background can enhance the level of corporate environmental management information disclosure, according to the analysis of the impact mechanism. Further research revealed that CEO environmental background promoted corporate environmental management information disclosure more significantly in state‐owned and heavily polluting enterprises.

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Effects of foreign acquisitions on financial constraints, productivity and investment in R&D of target firms in China

Cited by 44 publications

References 89 publications

Perception and Drivers of Financial Constraints for the Sustainable Development

Perception and Drivers of Financial Constraints for the Sustainable Development

Which Is More Important to the Success of an Acquisition; Acquirer or Target Resources?

Environmental backgrounds of CEOs and corporate environmental management information disclosure: The mediating effects of financing constraints and media attention

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