Chinese MNEs Ownership Global Strategy: Do Geographical Distance, Market Size, & Regulatory Quality Matter?

Authors

  • Iwan Kresna Setiadi University of National Development "Veteran" Jakarta
  • Munasiron Miftah University of National Development "Veteran" Jakarta
  • Hendro Widjanarko University of National Development "Veteran" Yogyakarta
  • Nuruni Ika Kusuma Wardhanid University of National Development "Veteran" East Java
  • Airlangga Surya Kusuma University of National Development "Veteran" Jakarta

Abstract

This study investigates the cross-border M&As performed by CMNEs in 25 developing countries from 2016 – 2018. Using econometrics approach, this study provides an empirical analysis of the role of geographical distance, host market size, and host government quality on the cross-border M&As performed by CMNEs. We find that geographical distance does not significantly affect the portion of ownership of CMNEs in cross-border M&As. We also find that host country market size and host country regulatory quality significantly influence the portion of ownership of EMNEs in cross-border M&As. Specifically, a larger host country market size and a better regulatory quality of the host country leads to higher portion of EMNEs ownership in their cross-border M&As. These findings contribute to cross – border M&As literature, especially in the context of CMNEs ownership in developing countries. Our study also offers practical implication with regard to the subject matter.

 

Keywords: Cross – border M&As; Geographic distance; Market size; Regulatory quality

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Submitted

2022-01-01

Published

2026-06-30

Issue

Proceedings of The 6th International Conference on Management in Emerging Markets (ICMEM) 2021

Section

Marketing, Strategy and Consumer Studies