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
Date Written: May 14, 2016
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
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