Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang

This paper examines the location decision on cross-border mergers and acquisitions (M&As) of Chinese multinational corporations (MNCs). Logistic regression technique is employed to test the motives of Chinese MNCs’ M&As between 2004 and 2006 in developed countries vs. developing countries. W...

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Main Authors:	Guohua, Jiang, Jiang, Guohua
Format:	Article
Published:	Faculty of Business Management 2013
Online Access:	http://ir.uitm.edu.my/id/eprint/8733/

id	uitm-8733
recordtype	eprints
spelling	uitm-87332019-10-23T06:31:14Z http://ir.uitm.edu.my/id/eprint/8733/ Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang Guohua, Jiang Jiang, Guohua This paper examines the location decision on cross-border mergers and acquisitions (M&As) of Chinese multinational corporations (MNCs). Logistic regression technique is employed to test the motives of Chinese MNCs’ M&As between 2004 and 2006 in developed countries vs. developing countries. We find that strategic asset-seeking, in particular technology-seeking, is the major reason for Chinese firms to merge or acquire firms from developed countries, whereas their M&As in developing countries are largely motivated by resource-seeking. A closer examination suggests that technology-seeking M&As might be motivated not only by an objective to learn from developed country firms but also by a desire to prevent the competing firms from getting ahead in the technology race, especially firms from other developing countries. Findings of this study have implications for policy makers of catching up economies in assisting firms’ learning and international competition. Faculty of Business Management 2013 Article NonPeerReviewed Guohua, Jiang and Jiang, Guohua (2013) Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang. Business and Management Quarterly Review (BMQR), 4 (2). pp. 1-11. ISSN 2180-2777
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
description	This paper examines the location decision on cross-border mergers and acquisitions (M&As) of Chinese multinational corporations (MNCs). Logistic regression technique is employed to test the motives of Chinese MNCs’ M&As between 2004 and 2006 in developed countries vs. developing countries. We find that strategic asset-seeking, in particular technology-seeking, is the major reason for Chinese firms to merge or acquire firms from developed countries, whereas their M&As in developing countries are largely motivated by resource-seeking. A closer examination suggests that technology-seeking M&As might be motivated not only by an objective to learn from developed country firms but also by a desire to prevent the competing firms from getting ahead in the technology race, especially firms from other developing countries. Findings of this study have implications for policy makers of catching up economies in assisting firms’ learning and international competition.
format	Article
author	Guohua, Jiang Jiang, Guohua
spellingShingle	Guohua, Jiang Jiang, Guohua Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang
author_facet	Guohua, Jiang Jiang, Guohua
author_sort	Guohua, Jiang
title	Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang
title_short	Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang
title_full	Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang
title_fullStr	Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang
title_full_unstemmed	Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang
title_sort	determining critical factors of location choice of cross-border merger and acquisition : the case of chinese firms / feng zhang and guohua jiang
publisher	Faculty of Business Management
publishDate	2013
url	http://ir.uitm.edu.my/id/eprint/8733/
first_indexed	2023-09-18T22:47:25Z
last_indexed	2023-09-18T22:47:25Z
_version_	1777417317695619072

Determining critical factors of location choice of cross-border merger and acquisition : the case of Chinese firms / Feng Zhang and Guohua Jiang

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