• The Journal of Asian Finance, Economics and Business
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• v.9 no.5
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• pp.99-109
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• 2022

The main reason for the increase in cross-border mergers and acquisitions in developed and emerging countries is globalization and growing economic interdependence across countries. The state of the economy has a significant impact on whether cross-border mergers and acquisitions are encouraged or discouraged by international strategic capital market changes. This study empirically evaluates the influence of determinants of economic development on the scale effect of Cross Border M&As separately on emerging and developed nations as a research gap. We first separated the small and large scale firms based on companies' worth and used panel regression to analyze the impact of GDP, employment rate, and market capitalization on cross-border merger & acquisition deals over the period of 2008-2018. Results indicate that GDP and market capitalization have a positive effect on CBM&A, whereas employment rate has a negative effect on CBM&A deals in large-scale firms of both emerging and developed countries. This study results offer the implication for the potential investors and policymakers to strategically analyze the implementation of cross-border mergers & acquisitions.

• Journal of Information Technology Services
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• v.10 no.4
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• pp.67-81
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• 2011

Recently, Mergers and Acquisitions (M&A) have become increasingly popular in the last few decades, and overseas' M&A are particularly increasing to sharpen corporate competitiveness on a global scale. Previous studies showed that one of the main reasons attributes to failures of mergers was the lack of attention to merging information systems. In recent years, both academy and industry have more focused on Post-Merger Integration (PMI) and the integration of information systems (IS) between two companies is one of the critical success factors of corporate. This paper focused on Post-Merger IT (Information Technology) Integration Methodology of Cross-Border M&A. We followed a single-site qualitative case study method in order to investigate the type of phenomenon in M&A's natural setting. Moreover, we examined a typical energy and power company case in order-based industry, so that other industry players may have different results to determine post-merger IT integration method and scope.

• Management & Information Systems Review
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• v.35 no.4
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• pp.79-98
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• 2016

A large number of Chinese enterprises have grown up and become increasingly competitive. Chinese firms have ventured abroad to search for new sources of growth. Overseas mergers and acquisitions of Chinese companies has been developed rapidly through extensive opening policy and active support system by government. The main purpose of this study is to identify the factors that affect the outcomes of overseas mergers and acquisitions made by Chinese firms in recent years, particularly, financial performance of the acquiring firms. This study aims to analyze systematically financial performance and its determinants of Chinese overseas M&A in recent years. This study chooses a sample of 167 overseas mergers and acquisitions in the manufacturing industry in China and the relevant data were collected during the period 2006 to 2012. The data were analyzed by using a multiple regression analysis to identify determinants of corporate performance. We showed that cultural distance, past performance, state ownership, and interaction between cultural distance and past performance. Findings of this study can provide useful guidance to outward Chinese M&A in the future.

• ETRI Journal
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• v.24 no.1
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• pp.56-64
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• 2002

This paper investigates how market participants react to mergers and acquisitions (M&As) involving telecommunications companies. The empirical evidence suggests that such activities convey bad news to the market. This is consistent with the synergy trap hypothesis and extant empirical findings of value-reducing diversification strategies in recent literature. The evidence also indicates that a cross-border, rather than a domestic M&A deal, is the main driver of the negative market reaction. Further, our evidence of negative impacts on the bidder's business after an M&A reinforces our main finding that market participants, on average, perceive M&A activities to be detrimental to shareholder value. This suggests that value creation or synergy through an M&A deal is not warranted even though it can generate an increase in size of the firm.

• Journal of Digital Convergence
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• v.13 no.1
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• pp.125-134
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• 2015

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.

• Journal of Korea Trade
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• v.26 no.6
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• pp.118-135
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• 2022

Purpose - The purpose of this study is to investigate the relationships among Chinese state-owned enterprises (SOEs), previous M&A experience, and the probability of deal completion in cross-border mergers and acquisitions (CBMAs). Since Chinese SOEs tend to be recognized by host countries as agents of their home country government, this study argues that SOEs will face difficulties in completing CBMA deals. However, the study expects that these difficulties may vary depending on whether the firm has previous M&A experience because firms can gain the knowledge and capabilities necessary to implement subsequent M&As successfully from past M&A experience. Design/methodology - To investigate our argument, we conduct a logistic regression using a sample of 363 CBMA deals from 304 Chinese publicly listed firms during 2007 to 2017. We used SOEs as an independent variable, experience of domestic and foreign M&As as moderating variables, respectively, and CBMA deal completion as the dependent variable. Findings - The study shows a negative and significant relationship between Chinese SOEs and the completion likelihood of CBMA deals. We find that this negative relationship is strengthened when the firm had prior domestic M&A experience, whereas foreign M&A experience alleviated the negative relationship. Originality/value - The issue of government ownership has remained unclear since government intervention has both advantages and disadvantages in pursuing CBMAs. Our findings support literature that argues Chinese SOEs face legitimacy concerns in the host countries, thereby lowering their CBMA deal completion likelihood. Furthermore, the study enriches the literature by identifying different moderating effects of domestic and foreign M&A experience on the negative relationship between SOEs and CBMA deal completion.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.12 no.6
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• pp.49-63
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• 2017

The purpose of this study is to analyze the effects of the collective characteristics of SMEs on M&A activity on the disclosure effect of mergers and long-term business performance after mergers. From 2000 to 2012, we examine 717 cases of small and medium-sized enterprises (SMEs) using multiple regression analysis and difference analysis. The results of this study are as follows. First, it is confirmed that the effect on the merger announcement effect is the same as the previous study on the Korean capital market listed companies except for the effect of diversification, listing effect, and cross-border effect. In addition, we have found that firms with higher performance in the past have higher excess returns in the disclosure effect of mergers and acquisitions. Second, unlike the previous studies that non-related mergers have a positive effect on long-term operating performance, for the characteristics of SMEs with lower market competitiveness than that of average listed companies, SMEs merging with same industry group companies have a positive effect on long-term operating performance. This study provides a new perspective on the merger and acquisition of SMEs by examining the effects of M&A announcement and long-term performance.

• Korea Trade Review
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• v.41 no.4
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• pp.157-183
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• 2016

This study examines the effects of the acquirer's experience on cross-border mergers and acquisitions(CB M&A) performance. We posit that various types of experience on M&A, including heterogeneity of experience, strategic alliance experience, first CB M&A, domestic and CB M&A experience may have an influence on the performance of CB M&A. The hypotheses are tested with multiple regression on global M&As made by Korean firms over the period of more than fifteen years. The empirical results indicate that firms with domestic M&A experience and the ones with CB M&A experience improve firm performance. Specifically, CB M&A experience more strongly and positively affects CB M&A performance. It also reveals that M&A experience and first CB M&A positively affect CB M&A performance. However, heterogeneity of experience negatively affects CB M&A performance and it has found no significant relationship between strategic alliance and firm performance. In addition, data show that the better explanation is an overall U-shaped relationship than a linear one between CB M&A experience and Performance. Overall, this study contributes to the literature on CB M&A by examining the effect of various types of experience such as heterogeneity of experience and alliance experience and offering a different explanation based on experience, more specifically, addressing the negative relationship between heterogeneity of experience and M&A performance.