 Does managerial ability matter for cross-border M&As: Evidence from Chinese listed firmsXiaohui Xu, Fang Wang, Xiaohua Chen and Gaoju Yang Journal of Asian Economics, 2021, vol. 74, issue C Abstract: With the deepening of economic globalization, cross-border mergers and acquisitions (CBMAs) are increasingly becoming an important choice of transnational investment, and more Chinese firms are becoming involved in them. However, the success rate of CBMAs for firms in China seems to be lower than that for firms in other countries. Using data on the CBMA deals initiated by Chinese A-share listed enterprises from 2003 to 2018, we examine the association between managerial ability and the likelihood of completing CBMAs. The empirical results show that the average impact of managerial ability on the likelihood of completing CBMAs is positive. Furthermore, by taking heterogeneity of the ownership structure into account, we find that the positive effect of managerial ability is significant only for non-state-owned enterprises. Moreover, the results from the mediation model show that relaxing financing constraints is a possible channel by which managerial ability affects the likelihood of completing CBMAs. Our results are robust to various model specifications. Keywords: Managerial ability; Cross-border M&As; Propensity score matching (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:74:y:2021:i:c:s1049007821000312 DOI: 10.1016/j.asieco.2021.101302 Access Statistics for this article Journal of Asian Economics is currently edited by C. Wiemer More articles in Journal of Asian Economics from Elsevier |
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