PROGRESS IN GEOGRAPHY ›› 2019, Vol. 38 ›› Issue (10): 1501-1513.doi: 10.18306/dlkxjz.2019.10.006

• Special Issue | Empirical Study • Previous Articles     Next Articles

Cross-border mergers and acqusitions of Chinese enterprises under the influence of regional integration and institutional distance

HE Canfei1,2,LI Zhenfa3,CHEN Hanghang3   

  1. 1. College of Urban and Environmental Sciences, Peking University, Beijing 100871, China
    2. Peking University-Lincoln Institute Center for Urban Development and Land Policy, Beijing 100871, China
    3. College of Urban Planning and Design, Peking University, Shenzhen 518055, Guangdong, China
  • Received:2019-03-25 Revised:2019-06-30 Online:2019-10-28 Published:2019-11-01
  • Supported by:
    Key Project of National Natural Science Foundation of China(No. 41731278);National Science Fund for Distinguished Young Scholars(No. 41425001)


Under the background of booming regional integration, studying cross-border mergers and acquisitions (M&As) of enterprises can help understand capital flow in regions of different scales. This study used the BVD-Zephyr cross-border M&As data of Chinese enterprises from 2003 to 2017 to explore the accomplishment rate and transaction scale of cross-border M&As from the perspective of regional integration and institutional distance. Through Heckman's two-stage regression, this study found that: 1) Regional integration can promote the closing of cross-border M&A deals, but does not contribute to an increase in the amount of M&A transactions. 2) Rising formal institutional distance (significant differences of laws and regulations) helps close the deals, but it is not conducive to expand the scale of transaction. 3) Decreasing informal institutional distance (disparities of culture and identity) is able to assist the completion of transactions, but as long as the deal is done, it has larger amount. Besides, with the deepening of regional integration, formal institutional distance between the members is believed to be attenuated, which leads to a decreasing difficulty of closing deals and the hindrance of institutional distance to the transaction scale will be weakened.

Key words: regional integration, cross-border mergers and acquisitions, institutional distance, Chinese enterprises