Reverse Spillover Of Chinese Enterprises' Cross-border Mergers And Acquisitions

Cross-border mergers and Acquisitions(CM&As)has became a key part of Chinese economic growth.The CM&As of China are increasing drastically.Great amount of China's CM&As have been invested into developed countries,the industry structure of China's CM&As is optimizing.As one of the main methods to obtain strategic assets,such as brands,technologies,distribution channels and so on,CM&As have reverse spillover effect theoretically.Literatures about the reverse effect of FDI and CM&As conclude distinct results,which schloars tend to believe is because of the effects of different impact factors.However,the research about how institution plays a role in this is not clear enough,the mechanism of how CM&As influence reverse spillover effect need to be improved.Moreover,micro-level research concern this question under developing countries context is not sufficient.Therefore,this paper developed the reverse spillover influencing mechanism of Chinese CM&As from institution perspective,and then developed hypothesizes and conduct empirical research based on this mechanism in order to examine the existence of reverse spillover effects of Chinese CM&As,and then to examine the impacts of home institution,host institution and international investment rules on the reverse spillover.This paper firstly developed the reverse spillover influencing mechanism of Chinese CM&As by reviewing the literatures concern the reverse spillover effect of outward foreign direct investment(OFDI),reverse spillover effect of CM&As and institutional impact on OFDI and CM&As.Then,this paper analyzed the trends and characteristics of China's CM&As,such as industrial distribution,host countries distributions,the efficiency of CM&As and so on.This paper then conducted the empirical studies.In chapter five,this paper proved the general existence of the reverse spillover effects of Chinese enterprises' CM&As by using difference-in-difference method.Then,this paper chooses three home-country institution factors to find out the influence of home-country institution on the reverse spillover effects of Chinese enterprises' CM&As.The results show that two regional institution factors,intellectual property rights(IPR)protection and regional openness,significantly moderate the reverse spillover effects of Chinese enterprises' CM&As.Strengthened IPR protection and open up within a region could reinforce the reverse spillover effects brought by CM&As.The firm-level home-country institution factor,which is political connection,also presents significant impact on the reverse spillover effects.However,the moderate influence is negative.Moreover,the negative moderate effects of political connection are more obvious showed in private-firm samples,west area sample,and in regions with lower IPR protection.The results are robust.This paper then conducts empirical research to examine the host-country institutional impact on the reverse spillover effects of Chinese enterprises' CM&As.The results say that the better the host institution is,the greater the reverse spillover effects are.Furthermore,the positive effects of host institution are more significant when in the private firm group,which means that private firms benefit more from the good quality of host institution.This paper considers international investment agreements(IIAs)as an institution factor.By using cosine similarity measure,this paper manages to quantify the content of IIAs and therefore measure their protection against FDI.This paper then examine the IIA protection's impact on the reverse spillover effects of Chinese enterprises' CM&As.The primary results are not significantly positive,but it appears to be more clear when divide the sample by the quality of host-country institution and by state ownership of Chinese enterprises.The results show that the protection's impact on the reverse spillover effects of Chinese enterprises' CM&As are more significant when enterprises invest in host countries with good institution quality,and when the enterprises are mostly owned by state.After theoretical and empirical research,this paper then adopts case study approach to analyze the reverse spillover effects of Chinese enterprises' CM&As by selecting three typical cases,they are Geely,Mindray and Shin Shin.All these three companies are then found to have significant reverse effect achieved by implementing CM&As.Also the theoretical mechanisms developed previously are found to be applicable in these cases.At last,this paper concludes,provides advices,discusses limitations and future research directions.This paper has a few innovations.First,this paper developed a reverse spillover influencing mechanism of Chinese CM&As from institution perspective.Second,find evidences from empirical research which support the influence of all three kinds institutional factors.Third,this paper provide empirical results on micro-level about the influence of home-,host-country institution and IIAs on the reverse spillover effects of Chinese CM&As.Third,this paper quantify the protection of IIA,provide evidences about the heterogeneity of IIAs and their impact on the reverse spillover effects of Chinese CM&As.