Why Half of Chinaâ€™s Overseas Acquisitions Could Not Be Completed
About half of Chinaâ€™s overseas acquisition attempts have not been completed; the chance of success is much lower than worldwide. This study provides an overview of Chinaâ€™s overseas acquisition, and investigates the reasons behind the low likelihood that an acquisition deal is completed. By using a sample that consists of 1,324 overseas acquisition attempts by Chinese firms, the study found that multi-level determinants influence the outcome of Chinaâ€™s overseas acquisitions. Based on the findings, we conclude that the distinctive social and economic environment of acquirers; ownership and low competitiveness of these acquirers; lack of global experience; and sensitiveness of the industry all hamper Chinese acquisition deals.
Volume (Year): 39 (2010)
Issue (Month): 2 ()
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