Do cross-border acquisitions create value? Evidence from overseas acquisitions by Chinese firms

Do cross-border mergers and acquisitions increase short-term market performance? The case of Chinese firms

“…Accompanying the rapid development of the Chinese economy since the open door policy and economic reforms over past decades, Chinese firms are playing an increasingly important role in cross-border M&A activities (Li, Li, & Wang, 2016;Zheng, et al, 2016). However, we have Our findings are consistent with the majority of previous studies (Bhagat, Malhotra, & Zhu, 2011;Boateng, Wang, & Yang, 2008;Wang & Boateng, 2007;Zhou, et al, 2015) on cross-border M&As by EE firms, but are contrary to Aybar and Ficici's study (2009) …”

“…Moreover, firms can better exploit their existing resources and competitive advantages in new markets to realize economies of scale (Li, Li, & Wang, 2016). Therefore, cross-border M&As will be perceived to enhance the competitive advantages of Chinese firms by integrating the acquired resources and capabilities from overseas.…”

Corporate governance and returns to emerging economy firm acquisitions in tax havens: An empirical test on Indian firms

“…Because the incremental value of CBAs is evaluated by investors and reflected in the stock prices of these firms upon the announcement of the acquisitions, empirical research has sought to examine the value of the CBAs by evaluating the cumulative abnormal returns around the date of announcement . The vast majority of these tests show CBAs are value enhancing for emerging economy firms (Bhagat, Malhotra, & Zhu, ; De Beule & Sels, ; Gubbi et al, ; Li et al, ; Nicholson & Salaber, ; Ning, Kuo, Strange, & Wang, ; Tao, Liu, Gao, & Xia, ).…”

“…A number of scholars have, therefore, been interested in investigating whether these strategies are successful, often by evaluating whether the announcement of such acquisitions results in positive returns to stockholders of the acquiring firms. Most of these studies have found stockholder returns to CBAs by emerging economy firms are positive, with average announcement returns ranging from about 1% to about 3% (De Beule & Sels, ; Gubbi, Aulakh, Ray, Sarkar, & Chittoor, ; Li, Li, & Wang, ; Nicholson & Salaber, ).…”

Partial or total integration in a cross‐border merger? Building a Nordic bank culture

“…Culture represents an important element of the merger and acquisition process, and its full strength is seen when two divergent cultures are forced to become one (Lodorfos & Boateng, ). Most culture‐focused studies in international M&A have dealt with cultural distance (Bauer et al, ; Popli & Kumar, ; Stahl & Voigt, ), which measures the differences between different cultural groups and is said to increase difficulty in communications and establishing mutual trust (Li, Li, & Wang, ). Cultural distance can occur due to differing backgrounds and professions, with the employees coming from different organizations with their own culture and ways of working, not necessarily in harmony with one another or with the culture of the entire project (Wiewiora, Trigunarsyah, Murphy, & Coffey, ).…”