Research Article
An Empirical Analysis of Liability of Origin and Acquisition Completion from the Perspective of Information Asymmetry: Based on the Logit Model
@INPROCEEDINGS{10.4108/eai.17-6-2022.2322619, author={Shiqiong YIN}, title={An Empirical Analysis of Liability of Origin and Acquisition Completion from the Perspective of Information Asymmetry: Based on the Logit Model}, proceedings={Proceedings of the International Conference on Information Economy, Data Modeling and Cloud Computing, ICIDC 2022, 17-19 June 2022, Qingdao, China}, publisher={EAI}, proceedings_a={ICIDC}, year={2022}, month={10}, keywords={liability of origin; cross-border acquisition completion; information asymmetry}, doi={10.4108/eai.17-6-2022.2322619} }- Shiqiong YIN
Year: 2022
An Empirical Analysis of Liability of Origin and Acquisition Completion from the Perspective of Information Asymmetry: Based on the Logit Model
ICIDC
EAI
DOI: 10.4108/eai.17-6-2022.2322619
Abstract
The high failure of different perceptions of the cross-border M&A of emerging market multinational enterprises (EMNEs) hinders their rapid catch-up in developed countries. This study attempts to interpret relevant influencing factors of M&A from the perspective of information asymmetry. Based on the data of Chinese multinational enterprises (CMNEs)' cross-border M&A from 2007 to 2018 in the SDC database, this study establishes a Logit model with the Stata analysis software, explores the impacts of the liability of origin on the CMNEs' cross-border M&A completion, and discusses the moderating effects of the status of enterprises and of employing legal advisors. As a result, it is found that: first, the higher the degree of the liability of origin is, the lower the success rate of M&A shall be; second, the special status of state-owned enterprises will aggravate the degree of the information asymmetry between the two sides, while employing legal advisors can reduce the degree of this asymmetry. Hence the former can significantly enhance the adverse effects of the liability of origin on M&A completion, while the latter can reduce the adverse effects.