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Completion of Chinese overseas acquisitions: Institutional perspectives and evidence

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  • Zhang, Jianhong
  • Zhou, Chaohong
  • Ebbers, Haico
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    Abstract

    This study investigates how institutional factors influence the likelihood that Chinese overseas acquisition deals are completed. We argue that a Chinese firm to succeed in a cross-border acquisition is an outcome of the multi-level institutional contingencies. Using a data set containing 1324 announced Chinese cross-border acquisition deals over the 1982-2009 period, the study finds that the likelihood of a Chinese firm to succeed in a overseas acquisition is lower, if (1) the target country has a worse institutional quality, (2) the target industry is sensitive to national security; and (3) the acquiring firm is a state-owned enterprise. In addition, the study finds host country's institutions moderate the effect of the two firm-level factors: the learning experience and state-owned ownership.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 20 (2011)
    Issue (Month): 2 (April)
    Pages: 226-238

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    Handle: RePEc:eee:iburev:v:20:y:2011:i:2:p:226-238

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    Related research

    Keywords: Acquisition completion Chinese overseas acquisition Institution;

    References

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    Cited by:
    1. Zhang, Jianhong & He, Xinming, 2014. "Economic nationalism and foreign acquisition completion: The case of China," International Business Review, Elsevier, vol. 23(1), pages 212-227.
    2. Fan, Di & Zhu, Cherrie Jiuhua & Nyland, Chris, 2012. "Factors affecting global integration of Chinese multinationals in Australia: A qualitative analysis," International Business Review, Elsevier, vol. 21(1), pages 13-26.
    3. Alvandi , Keyvan & Chaminade , Cristina & Lv, Ping, 2013. "Commonalities and differences between production-related FDI (PFDI) and technology-related FDI (TFDI) in developed and emerging economies," CIRCLE Electronic Working Papers 2013/47, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.

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