Volume 15, Number 1, June 2025
| Corporate Governance Effect on Chinese International Acquirers’ Performance |
Wenxin Guo 1*
Abstract
This paper examines how Chinese acquirers' heterogeneity in corporate governance may possibly affect acquirer’s learning via cross-border mergers and acquisitions (M&As). Findings are: (1) Government ownership decreases the effect of cross-border M&As on subsequent domestic productivity as compared to non-government ownership, which indicates that state-owned enterprises are less efficient in terms of learning; (2) Regarding management incentive mechanisms, top management team equity ownership enhances acquirers' domestic productivity via cross-border M&A, whereas pay does not. It implies that stock rewards are more efficient than cash rewards as incentives; (3) Counterintuitively, chair’s education degree negatively affects the acquirer’s learning via cross-border M&A.
Keywords: Government ownership, performance measurement, top management team, cross-border M&As, learning
JEL Classification: M1, F2
1 Associate Professor, Mike Cottrell College of Business, University of North Georgia, United States