Premium
Cross‐border M&As by Chinese firms: An analysis of strategic motives and performance
Author(s) -
Boateng Agyenim,
Qian Wang,
Tianle Yang
Publication year - 2008
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.20203
Subject(s) - diversification (marketing strategy) , business , chinese market , value creation , stock (firearms) , value (mathematics) , industrial organization , china , marketing , political science , mechanical engineering , machine learning , law , computer science , engineering
This article considers the strategic motivation and performance of Chinese cross‐border mergerand‐ acquisition (M&A) activities of 27 deals that took place in the Shanghai and Shenzhen stock markets in 2000–2004. The study finds that cross‐border M&As formation by Chinese firms are primarily motivated by market development (that is, increasing market share) to enable faster entry into new markets, promote diversification, and obtain foreign advanced technology and other resources. In terms of wealth creation, the study finds that cross‐border M&As create value for Chinese acquiring firms. © 2008 Wiley Periodicals, Inc.