XMU teacher publishes paper in world’s top business journal

Posted: 2017-01-04   Visits: 279

Lately, Asso. Professor Zhou Chenxi from the Marketing Department of the XMU School of Management, published as the first author a paper entitled “Failure to Complete Cross-Border M&As: “To” vs. “From” Emerging Markets” in the Journal of International Business Studies (Online), which is rated as the world-class top-tier journal in the realm of international marketing and strategy, one of the 24 internationally recognized top journals in UTDALLAS economic management, as well as one of the academic journals of top 50 business schools of Financial Times.

  

This research paper looks into how the predictors of the completion of cross-border mergers and acquisitions (M&A) involving emerging markets vary with the trajectory of global expansion, i.e., investment inbound to a developing market or outbound from a developing market. While cross-border M&As pertaining to emerging markets have been on the increase in recent years, there is a high rate of collapse prior to completion. Analysis based on 15 years of data from four emerging economies, Brazil, Russia, India, and China, from 1995 to 2010, reveals fundamental differences in the predictors of inbound vs. outbound M&A completion. Country-level factors reflecting differences in political, trade, and legal environments strongly affect the completion for inbound M&As, but have a much weaker influence on outbound M&As. By contrast, firm-level factors such as past M&A experience have a significantly stronger effect on completion for outbound than for inbound M&As. It’s of most interest to note that two deal-level factors (the percentage of stake the acquirer strives for and whether or not the deal is a cash transaction) increase the likelihood of completion for inbound but decrease it for outbound M&As. These findings have important managerial implications for enhancing the success of global expansions of China’s businesses.



Source: http://news.xmu.edu.cn/d1/29/c1552a250153/page.htm

Edited by Meng Ling