What drives the international ownership strategies of Chinese firms? The role of distance and home-country institutional factors in outward acquisitions

Youngwoo Lee, Martin Hemmert, Jongsoo KIM

Research output: Contribution to journalArticlepeer-review

Abstract

We study antecedents of the international ownership strategies of Chinese multinational enterprises (MNEs). Analyzing firm-level data on 380 outward acquisitions of Chinese MNEs during 2005–2012, we find their ownership shares to be negatively related to administrative and regulative distance, but positively related to cultural and geographical distance between home and host countries. Moreover, higher ownership shares are acquired in target countries with a high density of strategic assets and high financial-market capitalization, while state-owned enterprises take lower equity positions than private companies. Overall, we find home-country institutional factors more relevant for international ownership strategies among Chinese MNEs than cross-national distance factors.
Original languageEnglish
Pages (from-to)197–225
Number of pages29
JournalAsian Business and Management
Volume13
Issue number3
DOIs
Publication statusPublished - 1 Jul 2014

Fingerprint

Dive into the research topics of 'What drives the international ownership strategies of Chinese firms? The role of distance and home-country institutional factors in outward acquisitions'. Together they form a unique fingerprint.

Cite this