Are Chinese Cross-Border Outbound M&As Successful? (Japanese)

Chinese cross-border outbound mergers and acquisitions (M&As) of firms in developed countries have been expanding rapidly since the mid-2000s. The major motives are expansion to new markets and sourcing of knowledge and strategic assets. This study is the first attempt to examine the effects of...

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Bibliographic Details
Published inIDEAS Working Paper Series from RePEc
Main Authors INUI Tomohiko, EDAMURA Kazuma, TAN, Xiaofei, TODO Yasuyuki, HANEDA Sho
Format Paper
LanguageEnglish
Published St. Louis Federal Reserve Bank of St. Louis 01.01.2013
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Summary:Chinese cross-border outbound mergers and acquisitions (M&As) of firms in developed countries have been expanding rapidly since the mid-2000s. The major motives are expansion to new markets and sourcing of knowledge and strategic assets. This study is the first attempt to examine the effects of Chinese outbound M&As on firm performance, applying econometric analysis to large firm-level data. We find that sales, productivity, and tangible and intangible assets of acquiring firms increase substantially after M&A deals, while the research and development (R&D) intensity remains the same. These results suggest that Chinese firms on average achieve their intended goals of outbound M&As.