Cross-border transactions, mergers and the inconsistency of international reference points

Smith, Garrett C.; Coy, Jeffrey M.; Spieler, Andrew C.

doi:10.1016/j.jbef.2019.01.001

Cited by 4 publications

(1 citation statement)

References 33 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…According to Market Power Theory, when an industrial policy endorses a specific sector or technology, listed companies, aiming to solidify their market position within that domain, resort to M&As to achieve a larger market share, thereby neutralizing threats from rivals. These theoretical frameworks provide robust support for the findings of this research 52 . From a directional guidance perspective, industrial policies offer clear developmental trajectories for listed companies, aligning with the nation's long-term development goals and M&A strategies.…”

Section: Resultssupporting

confidence: 70%

The influence mechanism of industrial policies on Chinese companies' cross-border M&A decision-making

Shen,

Yang,

et al. 2023

Sci Rep

View full text Add to dashboard Cite

This study explored the potential links between Chinese industrial policy and cross-border mergers and acquisitions by Chinese firms from 2009 to 2019. Based on describing China's industrial strategy and evaluating the then-current situation of Chinese enterprises' cross-border mergers and acquisitions, this empirical study constructed a two-way fixed-effect panel model and an intermediate effect model to assess the mechanism of industrial policy's influence on Chinese enterprises' cross-border mergers and acquisitions decisions. The findings were as follows: (1) Industrial policy could promote the implementation of cross-border mergers and acquisitions of Chinese enterprises; (2) By easing financial restrictions, industrial policy could improve firms' access to capital and encourage cross-border mergers and acquisitions. (3) Industrial policies could promote the high political relevance of state-owned enterprises, thus promoting the success of transnational mergers and acquisitions of enterprises. Therefore, it was significant to promote the transformation of industrial policy from subsidy-oriented to performance-oriented and rationally evaluate the risks and benefits of M&A for enterprises to complete cross-border M&A.

show abstract

Section: Resultssupporting

confidence: 70%