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The importance of information channels for cross-border M&A: An analysis of Google's arrival and departure from China

Author

Listed:
  • Krigman, Laurie
  • Qin, Yaohua
  • Shams, Syed
  • Xiao, He

Abstract

This study investigates the impact of Google's initiation into and withdrawal from China on M&A performance. The empirical findings indicate that when Google arrived in China, cross-border M&A deals experienced a significantly higher cumulative abnormal return (CAR) on the announcement date compared with domestic counterparts. However, when Google departed China, the CARs declined for cross-border M&A announcements compared with domestic ones. These findings are robust to PSM-DID analysis, placebo tests, and dynamic trend tests. Channel tests show that Google provided incremental international information for acquirers and market participants, especially retail investors. Finally, we examine the real effect of Google on the efficiency of M&A transactions and find that Google impacts completion time, completion probability for cross-border deals, and premiums paid to international targets.

Suggested Citation

  • Krigman, Laurie & Qin, Yaohua & Shams, Syed & Xiao, He, 2026. "The importance of information channels for cross-border M&A: An analysis of Google's arrival and departure from China," Emerging Markets Review, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:ememar:v:73:y:2026:i:c:s1566014126000531
    DOI: 10.1016/j.ememar.2026.101489
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