A Review of Cross-Border Merger and Acquisition Research

The surge in the number and value of cross-border mergers and acquisitions (M&As) by Chinese firms in recent years has attracted worldwide attention. To better understand the causes and consequences of Chinese firms’ cross-border M&A activities, we review the theoretical and empirical cross-border M&A research published in both Chinese and English journals. First, we discuss the definition of cross-border merger and acquisition. Second, we provide descriptive statistics on the distribution of the cross-border M&A literature by publication year, journal level, research methodology, definition of cross-border M&A, geography, and research question, respectively. Third, we divide the cross-border M&A research into three categories—causes, processes, and consequences—and summarise and critique the relevant research in each category. On the basis of the findings from the review, we argue that future researchers should define the acquirer and the target on the basis of the concept of economic entity by emphasising the ultimate controller of a legal entity. We also identify the gaps in the literature. In terms of research questions, we believe more research is warranted on the causes and consequences of cross-border M&As. In particular, future research needs to pay more attention to the identification and measurement of M&A motivations and propose a stronger research design on the causes of cross-border M&As. We also notice the lack of research on the consequences of cross-border M&As for the acquirer’s other stakeholders, industry, and country. We also find that the extant literature has not paid sufficient attention to cross-border M&As by acquirers in emerging markets, SOEs, and unlisted firms