Are Chinese Acquirers Discriminated against in Cross-border Mergers and Acquisitions? An Analysis Based on Covered Transactions Filed with CFIUS

Sichong Chen; Wenxue Li; Qi Wang

doi:10.1111/cwe.12320

Are Chinese Acquirers Discriminated against in Cross-border Mergers and Acquisitions? An Analysis Based on Covered Transactions Filed with CFIUS

Sichong Chen, Wenxue Li, Qi Wang

Research output: Contribution to journal › Article › peer-review

6 Scopus citations

Abstract

This study employs a sample of covered transactions filed with the Committee on Foreign Investment in the United States (CFIUS) of cross-border mergers and acquisitions targeting American companies based on publicly available news reports and announcements to examine the heterogeneity hypothesis in the CFIUS review process. A comparative analysis of case studies and an empirical analysis of logit regressions are performed. We also explore how CFIUS reviews may have an impact on corporations' future mergers and acquisitions decisions in a panel data model setting. The results show that both unfair treatment in CFIUS review and the deterrent effect of CFIUS interventions have contributed to the recent sharp decline in China's direct investment in the US.

Original language	English
Pages (from-to)	37-58
Number of pages	22
Journal	China and World Economy
Volume	28
Issue number	2
DOIs	https://doi.org/10.1111/cwe.12320
State	Published - 1 Mar 2020
Externally published	Yes

Keywords

CFIUS covered transaction
cross-border M&A
deterrent effect
fair treatment

ASJC Scopus subject areas

General Economics, Econometrics and Finance

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1111/cwe.12320

Cite this

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title = "Are Chinese Acquirers Discriminated against in Cross-border Mergers and Acquisitions? An Analysis Based on Covered Transactions Filed with CFIUS",

abstract = "This study employs a sample of covered transactions filed with the Committee on Foreign Investment in the United States (CFIUS) of cross-border mergers and acquisitions targeting American companies based on publicly available news reports and announcements to examine the heterogeneity hypothesis in the CFIUS review process. A comparative analysis of case studies and an empirical analysis of logit regressions are performed. We also explore how CFIUS reviews may have an impact on corporations' future mergers and acquisitions decisions in a panel data model setting. The results show that both unfair treatment in CFIUS review and the deterrent effect of CFIUS interventions have contributed to the recent sharp decline in China's direct investment in the US.",

keywords = "CFIUS covered transaction, cross-border M&A, deterrent effect, fair treatment",

author = "Sichong Chen and Wenxue Li and Qi Wang",

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year = "2020",

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AU - Chen, Sichong

AU - Li, Wenxue

AU - Wang, Qi

PY - 2020/3/1

Y1 - 2020/3/1

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AB - This study employs a sample of covered transactions filed with the Committee on Foreign Investment in the United States (CFIUS) of cross-border mergers and acquisitions targeting American companies based on publicly available news reports and announcements to examine the heterogeneity hypothesis in the CFIUS review process. A comparative analysis of case studies and an empirical analysis of logit regressions are performed. We also explore how CFIUS reviews may have an impact on corporations' future mergers and acquisitions decisions in a panel data model setting. The results show that both unfair treatment in CFIUS review and the deterrent effect of CFIUS interventions have contributed to the recent sharp decline in China's direct investment in the US.

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KW - deterrent effect

KW - fair treatment

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VL - 28

SP - 37

EP - 58

JO - China and World Economy

JF - China and World Economy

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Are Chinese Acquirers Discriminated against in Cross-border Mergers and Acquisitions? An Analysis Based on Covered Transactions Filed with CFIUS

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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