The Institutional Influence on the Location Strategies of Multinational Enterprises From Emerging Economies: Evidence From China’s Cross-Border Mergers and Acquisitions

Management and Organization Review, 2016, 12:3, September 425–448

Posted: 19 May 2021

See all articles by Peter J. Buckley

Peter J. Buckley

University of Leeds - Faculty of Business; University of Leeds - Division of International Business

Pei Yu

Independent

Qing Liu

Renmin University of China

Surender Munjal

University of Leeds - Faculty of Business

Pan Tao

Independent

Date Written: May 14, 2016

Abstract

This study investigates the institutional influence on the location strategies of Chinese cross-border mergers and acquisitions (M&A) during the period 1985-2011 across 150 economies using Heckman's two-stage model. The results suggest that Chinese Multinational Enterprises (MNEs) are 'shortsighted' and show perverse behaviour towards host country risk when deciding on the location of host country and volume of investment undertaken through M&As, which may damage the firm's long-term profitability.

Keywords: China's cross-border M&A; EMNEs; institutions; location strategies

Suggested Citation

Buckley, Peter Jennings and Yu, Pei and Liu, Qing and Munjal, Surender and Tao, Pan, The Institutional Influence on the Location Strategies of Multinational Enterprises From Emerging Economies: Evidence From China’s Cross-Border Mergers and Acquisitions (May 14, 2016). Management and Organization Review, 2016, 12:3, September 425–448, Available at SSRN: https://ssrn.com/abstract=3846173

Peter Jennings Buckley

University of Leeds - Faculty of Business ( email )

Leeds LS2 9JT
United Kingdom

University of Leeds - Division of International Business ( email )

Leeds LS2 9JT
United Kingdom

Pei Yu

Independent ( email )

Qing Liu (Contact Author)

Renmin University of China ( email )

Surender Munjal

University of Leeds - Faculty of Business ( email )

Leeds LS2 9JT
United Kingdom

Pan Tao

Independent ( email )

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