The Impact of Cross-Border Mergers and Acquisitions on Corporate Organisational Resilience: Insights from Dynamic Capability Theory

Xin Huang (), Huitong Yang and Peijin Yang
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Xin Huang: School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China
Huitong Yang: School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China
Peijin Yang: School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China

Sustainability, 2024, vol. 16, issue 6, 1-23

Abstract: Utilising panel data from Chinese listed companies between 2008 and 2020, this study employs propensity score matching (PSM) in conjunction with a multi-temporal difference-in-differences (DID) model to examine the causal impacts of cross-border mergers and acquisitions (M&As) on the organisational resilience of enterprises. The findings reveal that while cross-border M&As augment company risk-taking and short-term financial volatility, they also bolster long-term growth, thereby enhancing overall organisational resilience. Cross-border M&As are particularly beneficial for bolstering organisational resilience in state-owned enterprises, non-manufacturing firms, and companies located in the eastern and central regions of China. Moreover, adhering to the principles of corporate social responsibility and possessing substantial market power are found to enhance the impact of cross-border M&As on organisational resilience. The results of this research hold important practical implications for companies seeking to improve organisational resilience and achieve sustainable development.

Keywords: cross-border mergers and acquisitions; corporate organisational resilience; corporate social responsibility; market power; dynamic capability theory (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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