Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1003172 | Research in International Business and Finance | 2011 | 16 Pages |
Abstract
A prominent issue in the internationalization of Chinese firms is that many are state-owned enterprises (SOEs) and that corporate governance in China is highly idiosyncratic. This paper identifies firm characteristics, industry effects and corporate governance mechanisms that foster internationalization. We find that Chinese cross-border mergers create shareholder value, but not more than domestic expansions. Corporate governance mechanisms matter, jointly and individually. While state-ownership predicts fewer cross-border mergers, a favourable board structure and corporate transparency explains higher M&A returns. As in more mature markets, firm- and industry-specific determinants also affect M&As in China.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Gerhard Kling, Utz Weitzel,