The internationalization of Chinese companies: firm characteristics, industry effects and corporate governance

Gerhard Kling, Utz Weitzel

Research output: Contribution to journalArticle

24 Citations (Scopus)


A prominent issue in the internationalization of Chinese firms is that many are state-owned enterprises (SOEs) and that corporate governance in China is highly idiosyncratic. This paper identifies firm characteristics, industry effects and corporate governance mechanisms that foster internationalization. We find that Chinese cross-border mergers create shareholder value, but not more than domestic expansions. Corporate governance mechanisms matter, jointly and individually. While state-ownership predicts fewer cross-border mergers, a favourable board structure and corporate transparency explains higher M&A returns. As in more mature markets, firm- and industry-specific determinants also affect M&As in China.
Original languageEnglish
Pages (from-to)357-372
Number of pages16
JournalResearch in International Business and Finance
Issue number3
Early online date6 Apr 2011
Publication statusPublished - Sep 2011



  • Cross-border M&A
  • Domestic M&A
  • Corporate Governance
  • Internationalization

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