Global Supply Chain Engagement and Cross-Border Mergers and Acquisitions
Cross-border mergers and acquisitions are important overseas investments of companies.It is recognized as one of the most effective strategies for rapidly capturing market share,scaling production,and swiftly eliminating competitors.As a primary mode of foreign direct investment,they attract significant attention from both theoretical and practical perspectives.The report of the 20th National Congress of the Communist Party of China stated that it is necessary to"form a pattern of opening up to the outside world on a larger scale,in a wider field,and at a deeper level."Under this requirement,it is of great significance to explore the driving factors of cross-border mergers and acquisitions and improve the ability of global resource allocation.Chinese companies often encounter significant challenges when undertaking cross-border mergers and acquisitions.In contrast,participating in the global supply chain represents a crucial avenue for internationalization that typically incurs lower costs.This approach involves a relatively lower level of market integration and presents less operational risk when entering foreign markets.Therefore,a gradual internationalization process may be more feasible for Chinese companies.They can progressively merge and integrate during their development,leveraging international market knowledge and investments to establish a foothold in the global market.This indicates that enterprises will follow a sequence from shallow to deep,and from small to large,according to the degree of embedding and the cost level,in the process of implementing internationalization strategy.Therefore,enterprises often choose to go global with the supply chain first,and then proceed with cross-border mergers and acquisitions.By selecting A-share listed companies from the Shanghai and Shenzhen stock exchanges as the research sample for the years 2011 to 2017,this paper empirically examine whether and how the level of engagement in the global supply chain affects corporate cross-border mergers and acquisitions.The study finds that global supply chain engagement helps to improve cross-border mergers and acquisitions.Further research shows that:(1)global supply chain engagement can improve the possibility of cross-border mergers and acquisitions by enhancing information visibility,improving legitimacy and international experience spillovers;(2)the impact of the global supply chain engagement is heterogeneous,when the global supply chain is more resilient or less risky,it has a more positive impact on cross-border mergers and acquisitions;(3)global supply chain engagement increases the short-term and long-term performance of cross-border mergers and acquisitions.The marginal contributions of this paper are as follows:Firstly,it enhances the understanding of the factors influencing the cross-border mergers and acquisitions processes by examining import and export trade freight information to analyze how participation in the global supply chain affects cross-border mergers and acquisitions.This research adds valuable insights to the growing body of literature on corporate cross-border mergers and acquisitions and provides a deeper understanding of the driving factors and implementation strategies involved in these activities.Secondly,this paper enriches the existing literature on the consequences of corporate participation in the global supply chain by linking the extent of such participation to corporate cross-border mergers and acquisitions.This connection not only contributes to the understanding of the economic effects of global supply chain involvement but also provides substantial empirical evidence for the underlying mechanisms at play.Thirdly,this study reveals the conditions under which the level of participation in the global supply chain influences corporate cross-border mergers and acquisitions.It suggests that enhancing the resilience and security of the industrial and supply chains can facilitate high-quality openness and internal-external coordination,providing a rationale for the necessity of establishing a broader,deeper,and more comprehensive pattern of openness to the outside world.
cross-border mergers and acquisitionsglobal supply chaininformation visibilitylegitimacyexperience spillovers
万方数据
维普
