Do Chinese firms benefit from government ownership following cross-border acquisitions?
Chinese firms’ increasing cross-border acquisitions (CBAs) in recent years seem to challenge the explanatory power of received theories of multinational enterprise (MNE) due to their relatively unique characteristics and the active role of the Chinese government. In this study, we seek to revisit an...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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2021
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| Online Access: | https://eprints.nottingham.ac.uk/65361/ |
| _version_ | 1848800217545048064 |
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| author | Tu, Wenjun Zheng, Xiaolan Li, Lei Lin, Zhiang (John) |
| author_facet | Tu, Wenjun Zheng, Xiaolan Li, Lei Lin, Zhiang (John) |
| author_sort | Tu, Wenjun |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | Chinese firms’ increasing cross-border acquisitions (CBAs) in recent years seem to challenge the explanatory power of received theories of multinational enterprise (MNE) due to their relatively unique characteristics and the active role of the Chinese government. In this study, we seek to revisit and contextualize the OLI paradigm in conjunction with the institution-based view and examine how Chinese firms’ post-CBA long term performance is associated with government ownership. Our study shows that Chinese firms with more government ownership demonstrate better post-CBA long term performance. However, the above relationship is differentially moderated by such firm-level boundary conditions as political connections and financial slack, and the country-level institutional boundary conditions (i.e., the host country formal institutions and the home-host country cultural distance). We discuss our findings in detail and explore theoretical and practical implications for both Chinese firms and other emerging economy (EE) firms. |
| first_indexed | 2025-11-14T20:48:03Z |
| format | Article |
| id | nottingham-65361 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T20:48:03Z |
| publishDate | 2021 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-653612021-06-04T02:14:28Z https://eprints.nottingham.ac.uk/65361/ Do Chinese firms benefit from government ownership following cross-border acquisitions? Tu, Wenjun Zheng, Xiaolan Li, Lei Lin, Zhiang (John) Chinese firms’ increasing cross-border acquisitions (CBAs) in recent years seem to challenge the explanatory power of received theories of multinational enterprise (MNE) due to their relatively unique characteristics and the active role of the Chinese government. In this study, we seek to revisit and contextualize the OLI paradigm in conjunction with the institution-based view and examine how Chinese firms’ post-CBA long term performance is associated with government ownership. Our study shows that Chinese firms with more government ownership demonstrate better post-CBA long term performance. However, the above relationship is differentially moderated by such firm-level boundary conditions as political connections and financial slack, and the country-level institutional boundary conditions (i.e., the host country formal institutions and the home-host country cultural distance). We discuss our findings in detail and explore theoretical and practical implications for both Chinese firms and other emerging economy (EE) firms. 2021-02-09 Article PeerReviewed application/pdf en cc_by https://eprints.nottingham.ac.uk/65361/1/ilovepdf_merged.pdf Tu, Wenjun, Zheng, Xiaolan, Li, Lei and Lin, Zhiang (John) (2021) Do Chinese firms benefit from government ownership following cross-border acquisitions? International Business Review, 30 (3). p. 101812. ISSN 09695931 Cross-border acquisition; government ownership; boundary condition; political connections; OLI paradigm; Institution-based view http://dx.doi.org/10.1016/j.ibusrev.2021.101812 doi:10.1016/j.ibusrev.2021.101812 doi:10.1016/j.ibusrev.2021.101812 |
| spellingShingle | Cross-border acquisition; government ownership; boundary condition; political connections; OLI paradigm; Institution-based view Tu, Wenjun Zheng, Xiaolan Li, Lei Lin, Zhiang (John) Do Chinese firms benefit from government ownership following cross-border acquisitions? |
| title | Do Chinese firms benefit from government ownership following cross-border acquisitions? |
| title_full | Do Chinese firms benefit from government ownership following cross-border acquisitions? |
| title_fullStr | Do Chinese firms benefit from government ownership following cross-border acquisitions? |
| title_full_unstemmed | Do Chinese firms benefit from government ownership following cross-border acquisitions? |
| title_short | Do Chinese firms benefit from government ownership following cross-border acquisitions? |
| title_sort | do chinese firms benefit from government ownership following cross-border acquisitions? |
| topic | Cross-border acquisition; government ownership; boundary condition; political connections; OLI paradigm; Institution-based view |
| url | https://eprints.nottingham.ac.uk/65361/ https://eprints.nottingham.ac.uk/65361/ https://eprints.nottingham.ac.uk/65361/ |