Journal article
Cross-border acquisitions and the performance of Chinese publicly listed companies
Journal of Business Research, Vol.141, pp.575-588
2022
Abstract
Based on resource dependence theory, agency theory, and institutional theory, we develop an integrated conceptual framework for motivations, moderators, and performance of Chinese cross-border acquisitions. We then use a unique dataset, which covers the 2003–2016 period, to examine how market-seeking, resource-seeking, and managerial self-interest motivations of cross-border acquisitions influence the performance of China's manufacturing sector publicly listed companies (PLCs). Analysis of the aggregated data shows strong support for market-seeking motivation for cross-border acquisitions. But we only find weak support for resource-seeking motivation. Our analysis also reveals the underlying agency problem thus supporting the managerial self-interest motivation for cross-border acquisitions. Disaggregated data analysis shows that all cross-border acquisitions are driven by market-seeking motivation, whereas resource-seeking is the main driver of acquisitions by state-owned and low-tech PLCs. Acquisitions by China's private-owned PLCs and medium/high-tech PLCs are also motivated by managerial self-interest in free cash flow, which leads to the principal-agent conflict.
Details
- Title
- Cross-border acquisitions and the performance of Chinese publicly listed companies
- Authors
- Xue Li (Author) - Shanghai Lixin University of Accounting and FinanceSajid Anwar (Author) - University of the Sunshine Coast, Queensland, School of Business and Creative IndustriesFei Peng (Author) - Shanghai Lixin University of Accounting and Finance
- Publication details
- Journal of Business Research, Vol.141, pp.575-588
- Publisher
- Elsevier Inc.
- DOI
- 10.1016/j.jbusres.2021.11.053
- ISSN
- 1873-7978
- Organisation Unit
- Indigenous and Transcultural Research Centre; School of Business and Creative Industries; University of the Sunshine Coast, Queensland
- Language
- English
- Record Identifier
- 99584906202621
- Output Type
- Journal article
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- Domestic collaboration
- International collaboration
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- Business
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