| Since China joined the World Trade Organization at the end of2001, thecross-border M&As have become a significant way of Chinese enterprises "going out".Under the pressure of global competition and in transition economy, Chinesemultinationals have to faster their internationalization process. They carried outcross-border M&As more frequently than usual. However, they are short of overseasinvestment experiences, the examples of successful implementation of M&As arelittle.Definitely, wrong location choice is one of main reasons of such fail. Still, thereare some gaps in the literature, and further research is needed to extend ourknowledge of strategic decisions. The regional differences between host countriesexisted, including the domestic politics, ethnic and religious diversity, resource giftsand national qualities. Consequently, the outcomes of cross-border M&As aredifferent. Analysis on specific investment environment is not limited to the dominantcommercial factors, such as the host country’s per capita GDP, inflation rate, exchangerate and infrastructures, but some institutional ones, like political risk, culturaldistance and economic tie with host country, should be also added.This paper focuses on location choice from the point of cross-border M&As.Based on statistical data and current cases, it analyzes the institutional factors thataffect corporations’ investment decisions from both theoretical and academicperspective.The paper is organized as follows. Chapter1introduces the background of thepaper. Chapter2reviews the existing theories and overviews current researches.Chapter3sums up the questions of Chinese enterprises cross-border M&Asinvestment. Chapter4selects the factors according to location choice through caseanalysis. Chapter5concludes that the hidden factors have directly influence oncross-border M&As investments. Furthermore, to avoid blindness on location choice,the paper put forward the corresponding risk prevention recommendations at last. |
