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The post‐acquisition performance of cross‐border mergers and acquisitions conducted by Chinese firms in the high‐tech industries: Profitable or innovative?
Author(s) -
Yang Monica,
Ai Qi
Publication year - 2021
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.22192
Subject(s) - profitability index , business , mergers and acquisitions , high tech , industrial organization , value creation , value (mathematics) , marketing , finance , machine learning , political science , computer science , law
Abstract This article examines the characteristics and performance of cross‐border mergers and acquisitions (M&As) conducted by Chinese firms in the high‐tech industries. Multiple measures of firm performance were used in exploring the profitability and innovativeness of both the acquiring and target firms. With 1,340 cross‐border M&As completed between 1990 and 2014, the major characteristics of these deals (e.g., industries of acquiring firms, countries of target firms, and the level of ownership) were identified. In terms of the performance of acquiring and target firms, the value creation hypothesis was supported by the innovation measure; however, it was not supported by accounting‐based measures. The implications of this study and directions for future research are thus discussed.