Sino-US Strategic Competition and Cross-Border M&As by Chinese Enterprises: Evidence from Public Opinion Big Data

Wei Mao, Kai Zhao, Tianyu Zhang and Jianwei Tan

Emerging Markets Finance and Trade, 2024, vol. 60, issue 9, 1942-1955

Abstract: This study investigates the effect of bilateral political relations on cross-border M&As in the context of Sino-US strategic competition. Based on 996 cross-border M&A cases of Chinese enterprises over the period 2001–2020, our econometric analysis reveals that, in general, Sino-US strategic competition reduces the completion rate of Chinese enterprises’ cross-border M&As. This effect is stronger for M&As in strategic industries and targets owned by government, suggesting direct government intervention. Moreover, M&As with higher investment irreversibility or in B2C industries are more exposed to this negative impact, suggesting investor and consumer caution with declining political affinity. However, in the long run, such a competition contrarily contributes to the improvement of the performance of Chinese enterprises. These findings challenge policymakers and scholars with a new emerging M&A theoretical framework regarding institutional uncertainty and risk.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2023.2296925 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:60:y:2024:i:9:p:1942-1955

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2023.2296925

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().