%0 Journal Article %A Canfei HE %A Zhenfa LI %A Hanghang CHEN %T Cross-border mergers and acqusitions of Chinese enterprises under the influence of regional integration and institutional distance %D 2019 %R 10.18306/dlkxjz.2019.10.006 %J PROGRESS IN GEOGRAPHY %P 1501-1513 %V 38 %N 10 %X

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.

%U https://www.progressingeography.com/EN/10.18306/dlkxjz.2019.10.006