Abstract
In this paper, we proposed a model of how corporate acquisition influences industrial performance by exploring industry-level and firm-level ownership characteristics in emerging markets. Based on a database of 1,934 acquisitions of listed firms in China, we examined the relationship between corporate acquisition type and industrial performance and the moderating effects of industrial and firm ownership characteristics. The study generated three major findings: 1) compared with cross-industry acquisitions, intra-industry acquisitions of firms have a stronger positive effect on industrial performance; 2) corporate ownership and industrial ownership variables exert different moderating impact on the relationship between acquisition type and industrial performance; and 3) firm ownership and industrial ownership have a joint moderating effect on the relationship between acquisition type and industrial performance. By conceptually arguing and empirically verifying how multi-level factors influence industrial performance in the context of emerging economies, we contributed to the study of the relationship between the micro-level firm acquisition and the macro-level industrial development in several distinct ways.
Highlights
Given their vitally strategic importance for the growth of firms and industries, acquisitions have increasingly become a widespread research theme at various levels and across fields in emerging economies (Deng, 2013; Gaur et al, 2013; Park, 2003; Zaremba et al, 2018)
Based on the dataset of 1,934 acquisitions of listed firms in China from 2013 to 2016, this study focuses on the impact of firm acquisition type on industrial performance and analyzes the moderating effect of industrial ownership characteristic and firm ownership attributes on the relationship between them from the perspective of ownership theory
This study further reveals that enterprise ownership and industrial ownership structure have a significant impact on the institutional environment in which the enterprise is located, and on corporate decision and performance, as well as on industrial structure and performance
Summary
Given their vitally strategic importance for the growth of firms and industries, acquisitions have increasingly become a widespread research theme at various levels and across fields in emerging economies (Deng, 2013; Gaur et al, 2013; Park, 2003; Zaremba et al, 2018). As two distinct types of acquisitions, intra-industry acquisitions are conducted in the With a rapid economic growth in China, corporate acquisitions of Chinese firms show obvious characteristics of high frequency, large scale, and massive quantity domestically and internationally (Cai & Tian, 2019; Deng & Yang, 2015). A number of Chinese companies conducted notable cross-border acquisitions; they involve both intra-industry acquisitions (e.g., Geely’s acquisition of Volvo and Haier’s acquisition of GE’s home appliance business) and cross-industry acquisitions (e.g., Midea’s acquisition of Kuka in Germany) (Cai & Tian, 2019; Lin et al, 2018; Wu & Deng, 2020)
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