The performance of cross-border acquirers from emerging economies: An empirical analysis of Chinese firms

Abstract

Purpose

This paper aims to evaluate the value creation of cross-border acquisitions conducted by Chinese firms and determinants that result in the different performance. During the recent decades, the world has witnessed multinational enterprises (MNEs) from emerging economies undertaking aggressive cross-border mergers and acquisitions (M & As). This phenomenon raises great attention in the international business community, and also challenges the traditional understanding in the extant literature.

Design/methodology/approach

The authors examine 272 cross-border M & As associated with 48 target countries during the period 1996-2012.

Findings

Evidences show that cross-border expansions on average point to negative performance in the short term. The authors also find that prior cross-border M & A experiences, ownership structure of the acquirer (state-owned vs private) and acquirer size positively affect the performance of the acquiring firm.

Originality/value

In addition to contributing to cross-border M & A literature, the findings also provide useful guidance to outward foreign direct investment by firms from emerging economies.

Citation

Ma, X., Zhu, Y. and Cai, W. (2016), "The performance of cross-border acquirers from emerging economies: An empirical analysis of Chinese firms", Nankai Business Review International, Vol. 7 No. 1, pp. 21-38. https://doi.org/10.1108/NBRI-12-2014-0046