Font Size: a A A

Cross-border M & A Theory And Empirical Research

Posted on:2004-01-29Degree:MasterType:Thesis
Country:ChinaCandidate:X Y ChenFull Text:PDF
GTID:2206360092498121Subject:Technical Economics and Management
Abstract/Summary:PDF Full Text Request
Globalization has entered the lexicography of international business research, which multinational enterprises (MNEs) growth and integration strategies heading the research agenda. In the current process of globalization, MNEs play a starring role. Interest in globalization is not merely of academic interest. Governments seek to understand the new global economy, and the enhanced role of host and home country MNEs in shaping the world economic order. Foreign Direct Investment (FDI) requires a choice of location and a choice of the contractual form for overseas involvement, which can take the form of either Greenfield investment, M&As or Joint ventures. The share of Cross-border M&As flows accounted for by the FDI of MNEs has been rising in recent years. Entry form and entry mode decisions stand at the center of MNEs growth strategies. This paper concentrates on entry mode choice, especially Greenfield, Cross-border M&As and Joint ventures. In part one, the paper reviews the recent trends, the main features and the drivers of the cross-border M&As. In part two, firstly a fully integrated analysis of the foreign market entry decision is presented, encompassing the choice between exporting, licensing, joint ventures and wholly owned foreign investment (Cross-border M&As and Greenfield Investment) . Secondly, utilizing ordinary least squares (OLS) models tests the hypothesis that macroeconomic variables, in particular interest, foreign exchange rates and stock price influenced the values, numbers and directions of cross-border M&As between two different countries. Thirdly, given that the importance of an entry's sequential position and that most MNEs have multiple lines of business, we use a longitudinal model to test relative factors. Finally, based on both theoretical rational and empirical evidence key determinants of entry mode are formulated which are intended to indicate the specific conditions under which MNEs are more likely to choose Cross-border M&As as the entry mode. In part three, the key determinants are applied to the case of China. We here pointed out the trends of Cross-border M&As in China. We also discuss the potential impacts of cross-border M&As and highlight some implications for government policies.The innovations of the paper are listed as follow:1. To study the key determinants of cross-border merger and acquisitions we, in the paper, not only applied static analysis and dynamic analysis together, but also applied micro-factor analysis and macro-factor analysis together.2. The company-based analysis is expanded to business lines, so as to match the development of MNEs.
Keywords/Search Tags:FDI, cross-border M&As, greenfield investment joint ventures, entry mode choice
PDF Full Text Request
Related items