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http://dx.doi.org/10.14400/JDC.2015.13.1.125

A Study on the Firm Performance Factor of Cross-border Merger and Acquisition in China  

Lee, Young-Hwan (Dept. of Business Administration, Kumoh National Institute of Technology)
Jeong, Seon-Hye (Dept. of Business Administration, Kumoh National Institute of Technology)
Chen, Jingzhu (Dept. of Business Administration, Kumoh National Institute of Technology)
Publication Information
Journal of Digital Convergence / v.13, no.1, 2015 , pp. 125-134 More about this Journal
Abstract
Cross-border M&A brings positive benefits to corporations and social economic development which can not been given by any investment ways, having greatly reduced the investment risks and costs to enter the host country market, resulting in the rapid development of the Cross-border M&A in china. This study examines the factors affecting firm performance of Cross-border merger and acquisition on Chinese manufacturing industry. This study chooses a sample of 31 Cross-border M&A in the manufacturing industry in China and the relevant data were collected during the period 2001 to 2007. The data were analyzed using a multiple regression analysis to identify the factors that affect Firm performance. It is found that the Firm performance is significantly affected by the oversea investment experience, cultural distance between countries, cost in M&A transaction and the number of transaction shares.
Keywords
cross-border mergers and acquisitions; cultural difference; firm performance;
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