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Title: The determinants of cross-border mergers and acquisitions (M&As) in emerging markets : an insight into China
Author: Zou, Huan
Awarding Body: University of Manchester
Current Institution: University of Manchester
Date of Award: 2006
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This research examines the determinants of cross-border mergers and acquisitions (M&As) in China at multi-levels - country, industry and corporate levels. The wave of cross-border M&As has received extensive attention both from practitioners and academic, to consider: (i) what determines their pattern and in particular, what influences their behaviour over time, and (ii) what influences mangers' considerations on international acquisition strategy. However, little attention has been paid to the first problem due to a concentration on the wave pattern within industrial economies as well as the small proportion of cross-border transactions in emerging markets. Moreover, past research on international acquisition at corporate-level suffers a lot from the fragmented perspectives which do not integrate systematically with a number of theoretical schools, industrial organisation, institutional theory, human resource, finance and economics. Considering China as an unexplored market for this topic, this research firstly tries to identify the determinants at country- and industry-levels. This research integrates domestic merger, industrial organisation and FDI perspective and employs two panel databases to model the behaviour, at country and industry levels, of cross-border M&As in China, for the period 1990-2003 and 1991-2003 respectively. Drawn upon the panel data analysis, this research confirms that cross-border M&As in China are linked with several economic fundamentals (Le. market size, growth potential, labour costs, risk and cultural distance) that are identified in previous empirical studies as well while the relationship with financial variables is less convincing due to the incomplete financial market for acquisition transactions in China. This research also shows that deregulation in industrial sectors is a critical determinant to explain the differences in the acquisition activity across industries. The restructuring of industry, particularly in the aspect of reducing the number of state-owned enterprises and strengthening the preferable policy for foreign investment, encourages more acquisition activities in those sectors with fast paced and determined actions.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available