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ID: 171886

Are Chinese Acquirers Discriminated against in Cross-border Mergers and Acquisitions? An Analysis Based on Covered Transactions / Chen, Sichong ; Wang, Qi ; Li, Wenxue

Sichong Chen, Wenxue Li, Qi Wang	Journal Article
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Summary/Abstract

This study employs a sample of covered transactions filed with the Committee on Foreign Investment in the United States (CFIUS) of cross-border mergers and acquisitions targeting American companies based on publicly available news reports and announcements to examine the heterogeneity hypothesis in the CFIUS review process. A comparative analysis of case studies and an empirical analysis of logit regressions are performed. We also explore how CFIUS reviews may have an impact on corporations’ future mergers and acquisitions decisions in a panel data model setting. The results show that both unfair treatment in CFIUS review and the deterrent effect of CFIUS interventions have contributed to the recent sharp decline in China’s direct investment in the US

Key Words

CFIUS Covered Transaction ; Cross-Border M&A ; Deterrent Effect ; Fair Treatmen

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ID: 175060

patterns of state-firm coordination in China’s private sector internationalization: China’s mergers and acquisitions in Southeast Asia / Oh, Yoon Ah; No, Suyeon

NO, SUYEON	Journal Article
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This study examines state-private firm coordination in China’s corporate globalization with a focus on cross-border mergers and acquisitions in Southeast Asia. The profile of China’s private firms in the country’s overseas economic expansion has risen dramatically over the past few years, but the controversy continues as to what extent they coordinate their overseas activities with the state. This is because Chinese private firms, not unlike state-owned enterprises, have political economy reasons to subject their corporate decision-making to state preferences. Still, the outcomes of state-firm coordination in private sector internationalization vary. In some transactions, the state and private firms form a strong partnership through elaborate policies and financing; others see some alignment that is not decisive for transaction outcomes; and still others see minimal, almost rhetorical engagement. The varied outcomes can be explained by the combination of foreign direct investment (FDI) motives and the technology intensity of the target industry. We propose a framework drawn from the international business theory of FDI motives and the literature on China’s techno-industrial policy to classify different types of state-private sector coordination. We survey recent developments in China’s cross-border acquisitions in Southeast Asia and provide illustrative case studies to support our argument.

Key Words

China ; Southeast Asia ; Private enterprises ; Cross-Border M&A ; Asset Seeking ; Market Seeking

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