Chinese and Indian M&As in Europe: The relationship between motive and ownership choice

Lucia Piscitello, Roberta Rabellotti and Vittoria Giada Scalera ()
Additional contact information
Vittoria Giada Scalera : School of Management - Politecnico di Milano

No 2014/3, Papers in Innovation Studies from Lund University, CIRCLE - Centre for Innovation Research

Abstract: The present paper is about the ownership choices by Emerging Market Multinational Enterprises (EMNEs) when they invest in Europe through M&As, and the relationship with the main motivations underlying their international expansion. Namely, we claim that EMNEs prefer to acquire less control and keep the local partner when they invest for seeking knowledge. Additionally, EMNEs choose partial acquisitions in case of high dissimilarity in terms of culture, industry and knowledge base.

Our empirical analysis relies on a dataset of M&As undertaken by Chinese and Indian MNEs in high and medium-high tech sectors, in the period 2003-2011. We use content analysis of public announcements and company reports for classifying the main motivation of the acquisitions, and econometric analysis for testing our hypotheses. Our results confirm the expectations.

Keywords: Cross-border acquisitions; Ownership choice; Foreign direct investment motives; Emerging market firms (search for similar items in EconPapers)
JEL-codes: F23 G34 O32 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2014-05-07
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://wp.circle.lu.se/upload/CIRCLE/workingpapers/201403_Picitello_et_al.pdf (application/pdf)

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:hhs:lucirc:2014_003

Access Statistics for this paper

More papers in Papers in Innovation Studies from Lund University, CIRCLE - Centre for Innovation Research CIRCLE - Centre for Innovation Research, Lund University, PO Box 117, SE-22100 Lund, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Torben Schubert ().